As of Jan 1, 2025, SHOP will now act as a Marketplace that collects and remits tax on behalf of the vendor - seems similar to how Amazon works.
How will this flow through the native Acumatica Shopify Connector to Acumatica and then through the Avalara Connector to AvaTax? How is the transaction identified as a SHOP transaction? Are there parameters that need to be set up so that the vendor does not double pay the tax?
Best answer by tusharpandita74
Hi
Shopify does not give taxes that are remitted with Shop separately as charges their API’s, however, we have a way of identifying where channel is liable for taxes and can bring such taxes as charges. We have a CR for this change and will plan to start implementing it in coming quarters.
+7
Ideally, a payment document for SHOP orders should have CHARGES populated with taxes, similar to what is done for Amazon orders. If this were implemented, then the payment would reflect that the expected payout is less than the order total, and it would take care of the accounting piece at the time of payment reconciliation.
Now, with all this said, I don’t even know if Shopify has this data properly exposed to the API, which Acumatica connector can then consume to initiate creating CHARGES for payments.
Thanks
There needs to be a way to submit invoices to marketplaces and not calculate tax on them but still report the sales to Avalara. This is a critical and urgent matter with us.
Any update on this issue? We had to disable our Shop App channel until this is resolved. It’s is a critical and urgent matter for us as well.
+1
Hi
Shopify does not give taxes that are remitted with Shop separately as charges their API’s, however, we have a way of identifying where channel is liable for taxes and can bring such taxes as charges. We have a CR for this change and will plan to start implementing it in coming quarters.
Hi
Shopify does not give taxes that are remitted with Shop separately as charges their API’s, however, we have a way of identifying where channel is liable for taxes and can bring such taxes as charges. We have a CR for this change and will plan to start implementing it in coming quarters.
Hello - Do we know if this has made it onto the roadmap and if we have an ETA for the fix? We have an open support case with Avalara, and we are considering making a customization to our integration to pass a UDF field from Acumatica and map it to a Custom Tax Rule Avalara.
We are having a similar issue with TikTok Shop and Shop. There doesn’t seem to be a solution to solve for the marketplace facilitator tax that these Marketplaces are collecting and remitting on behalf of merchants. We need these orders to come in from Shopify <> Acumatica for fulfillment and accounting purposes. Once the order is shipped and invoiced in ACU, it moves to Avalara and the sales tax is reported again, resulting in a duplicate tax payment. Is there another solution? This is a critical and urgent matter for us as well - selling on TikTok Shop and Shop is a major part of our 2026 growth strategy.
+7
Page 337-339
Retail Commerce: Importing Taxes Remitted by Marketplaces from Shopify
A Shopify store can sell through multiple channels, including online marketplaces such as Amazon, Facebook, Instagram, and the Shop Marketplace. In some regions, tax regulations require these marketplaces to collect and remit taxes on the seller’s behalf for orders placed through their platforms. Shopify marks these taxes as channel-liable, meaning the marketplace handles tax remittance instead of the merchant. In Acumatica ERP 2026 R1, you can configure marketplace-withheld taxes and clearly distinguish them from taxes on regular orders. These taxes are also imported for orders placed through marketplace channels, helping ensure accurate reporting and easier reconciliation across multiple sales channels.
Configuring Taxes Remitted by Marketplaces First, you enable the Tax Withheld by Marketplaces feature on the Enable/Disable Features (CS100000) from. Next, on the Orders tab of the Shopify Stores (BC201010) form, configure the tax synchronization for regular Shopify orders as described in Importing Orders with Taxes. The system automatically adds sales channels from your Shopify store to the table in the Taxes section, as shown below. Select the Active check box for the marketplaces from which you want to import taxes to specific tax accounts. For each selected marketplace, specify a tax zone and a tax ID.
You also configure the MarketplaceSalesTaxAdjustment charge in the Payment Fees table on the Payments tab for the payment method used by marketplace channels, as shown below. For this charge, you select an entry type that is assigned to the cash account of the payment method and also meets the following criteria on the Entry Types (CA203000) form: • Has the Disbursement type • Has the Deduct from Payment check box cleared • Uses the same Default Offset Account as the tax payable account specified for the marketplace channel
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
