Are merchants liable for errors?

Yes. Merchants are generally responsible for the accuracy of their tax settings and compliance with applicable tax laws, even when using Shopify Tax or other automated tax tools.

Shopify can help calculate and collect taxes, but merchants remain responsible for:

• Providing accurate tax registration information

• Configuring tax settings correctly

• Reviewing tax calculations and reports

• Filing and remitting taxes to the appropriate tax authorities

So, merchants may be liable for errors in tax collection or reporting if their tax setup or compliance obligations are incorrect.