Follow the instructions below to install and activate the Avalara Tax Compliance app on your Shopify store. This app ensures global tax compliance and the automatic collection and remittance of taxes.

Avalara connects to your store and syncs it to a Reach-managed Avalara account provided by your Reach representative. Reach will ensure your Shopify store shows customers accurate VAT, GST, and sales tax calculations. Reach also withholds, files, and remits the taxes we collect to the correct authorities. With Reach and Avalara, the tax doesn't have to be that hard.

1. From your Shopify admin, go to Settings and click Taxes and duties.
2. Scroll down to Apps.
3. Next to Avalara Tax Compliance, click Install.

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Note

Avalara Tax Compliance is a paid application, and Reach has purchased it on your behalf.

7. From the Avalara Tax Compliance page, click Install Avalara Tax Compliance.

8. To install the Avalara Tax Compliance app, click Install.

You'll see the Connect to your production account page for Avalara Shopify. At this point, your Reach representative will configure and activate the Avalara Tax Compliance app on your behalf.

Your Reach representative will enter the Avalara credentials and activate and configure the Avalara Tax Compliance app. Avalara will import your Shopify stock keeping units (SKUs).

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Important

Do not begin this step until the scheduled go-live call with Reach. Your Reach representative will activate the Avalara Tax Compliance app during that call.

Once activated, verify the following items:

After activating the Avalara Tax Compliance app, go to Taxes and duties and verify that Avalara Tax Compliance displays Active, indicating that Avalara now provides taxes and duties.

The Regional settings on the Taxes and duties page display Backup only because Avalara overrides Shopify's regional settings.

You may also see the following warnings. Shopify displays warnings when Shopify tax calculations are not working. In this instance, Avalara Tax Compliance is activated and provides tax calculations instead of Shopify.

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Everything is OK

Shopify may still display specific warnings after configuring the Avalara Tax Compliance app. Don’t worry; everything functions correctly, and Avalara calculates taxes accurately. Additionally, note that your selected countries no longer appear in the list of countries under Regional settings, and you can disregard this list. Avalara takes care of taxes and duties for every country.

Ensure that all your markets display the tax correctly, whether prices are tax-inclusive or tax-exclusive.

1. Go to Markets.

   

2. Click a market in the Markets table. The selected market (region) page will appear. (Click to enlarge an image.)

3. Choose one of the following options:

   • Europe: Under Inherited, click the change icon in the Taxes and duties row.

     

   • United States: Under Customized, click the Taxes and duties dropdown list.

     

4. Select one of the following options from the Tax display dropdown list and click Done:

   • Dynamic tax display: Select this option if you want Shopify to include or exclude taxes based on the customer's region.

   • Show as included: Select this option for tax-inclusive countries.

   • Show as line item: Select this option for tax-exclusive countries.

     (Click to enlarge an image.)

     

     

5. Repeat steps 2-5 for each additional region.

On the Taxes and duties page, clear the following checkbox:

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Important

Avalara Tax Compliance is currently active. Selecting this checkbox will negatively impact the tax calculations.