Shopify powers all sales tax calculation and collection. This is based on the Product Category that is assigned to each of your products. (Note that in Shopify terms: Product Category is different than Product Type. Product Category is linked to Shopify's tax calculations, while Product Type is for your organizational purposes.)
As part of the Flaviar Checkout integration setup, we've ensured that all alcohol products are categorized correctly. If you're selling non-alcohol items via Flaviar Checkout, you'll want to do a quick review of your non-alcohol products in Shopify to ensure they have the right Product Category assigned.
For an overview of all your products and their categories, you can go to the following page in Shopify:
Go to Settings.
Select Taxes and Duties.
Under the Manage sales tax collection section, select United States.
Under the Categorize products for tax purposes section, click Manage categories.
Given that all alcohol sales are going directly to the retailers that are actually selling your products, you don't have any tax responsibilities related to alcohol sales that occur via Flaviar Checkout. As part of the Flaviar Checkout integration setup, we've set your store up to charge sales tax based on your distribution states (i.e. where we have retailers selling your products).
For sales of non-alcohol products, given that you'll be directly selling these to consumers, you are responsible for remitting sales tax in each relevant state.
As part of our integration setup, we have not set any tax collection regions specifically for the purposes of your non-alcohol sales. If you have states that you need to e collecting sales tax in, be sure to make these updates in Shopify. To do so:
Go to Settings
Select Taxes and Duties
Under the Manage sales tax collection section, select United States.
Under the Regions you're collecting in section, click Collect Sales Tax.
Select the state(s) and then hit Collect sales tax
If you are selling non-alcohol items via Flaviar Checkout and aren't sure which states you need to collect states tax in, we recommend discussing this with your accountant. Note that - separate from any regions you've specified to collect sales tax in - Shopify has built-in tools to automatically determine when you qualify for a sales nexus in any given state.
Unfortunately, Shopify cannot currently distinguish sales tax collection requirements between different fulfillment companies. For example, if we've set up California for your store so that our California retailer receives the proper sales tax on alcohol orders, you'll also receive sales tax on California orders for non-alcohol items. Keep this in mind when managing the accounting for your non-alcohol sales.