This feature is currently in Beta and not yet available to all Relay accounts. Watch for this to be released to further accounts in the near future!
Relay adds up the sales tax Shopify recorded on the orders behind each Shopify payout and transfers that total from the Relay account receiving your Shopify payouts into your Sales Tax account (a new checking account), using an auto-transfer rule. It isn't a percentage, and it isn't an estimate of what you owe.
To create a sales tax account, see How to set up a Sales Tax account for your Shopify payouts in Relay.
Important to know: Your Sales Tax account and auto-transfer rule sets aside sales tax recorded on your Shopify sales only. It doesn't cover sales from other channels or other tax obligations, and Relay doesn't determine what you owe.
Where can I read more details about the Sales Tax account?
See How to set up a Sales Tax account for your Shopify payouts in Relay for more details.
How does Relay decide how much sales tax to set aside from a Shopify payout?
Relay adds up the sales tax recorded on every order in the payout and transfers that total. Shopify records the sales tax on each order; when a Shopify payout lands in Relay, Relay finds the orders included in that payout and sums the sales tax recorded on each one.
Because every payout contains a different mix of orders, the amount changes from payout to payout. Relay never applies a flat percentage or a blended tax rate, and the transfer isn't a calculation of your tax liability. Amounts always round up, so your Sales Tax account is never short.
If the sales tax recorded on the orders is more than the payout itself, the transfer is limited to the amount of the deposit.
How are refunds and cancelled orders handled?
Cancelled orders are left out of the total, but refunded sales tax is not subtracted. Relay deliberately sets aside more rather than less, to make any corrections needed later easier.
Where does the sales tax transfer go?
Each transfer moves money from the Relay account that receives your Shopify payouts into your Sales Tax account. The money stays inside Relay. It is not a payment to any tax authority. You can see each transfer in your transaction history, alongside your other internal account transfers.
What is the one-time catch-up transfer?
A one-time catch-up transfer is an optional, one-time transfer that covers the sales tax recorded on Shopify sales since you last remitted sales tax. The recurring rule only covers payouts after it's created; the catch-up fills that gap.
During setup, Relay asks when you last remitted sales tax and how much you've already set aside, then shows you the remaining amount.
Relay asks for your approval before anything moves. You can skip it.
The catch-up moves money from another Relay account you choose into your Sales Tax account. If that account doesn't have enough to cover the catch-up, you'll be prompted to add funds from an external bank account first.
If you skip the catch-up, you can ask for it again while you're still in the setup chat. After setup, set aside past sales tax with a manual, one-time internal transfer into your Sales Tax account.
What happens to my existing auto-transfer rules?
On a Shopify payout, the sales tax transfer runs first and your other auto-transfer rules apply to what's left. If you already split incoming deposits across accounts, those rules may receive less on Shopify payout days than they did before. Deposits that don't come from Shopify are not affected. They continue to flow through your existing rules as before.
Tip: If a Split incoming deposits rule already sends a percentage of every deposit to a tax account, review its percentages after setup so you're not setting aside sales tax twice.
Can I pause the sales tax transfer rule?
Yes. You can turn the Sales Tax rule off and on at any time.
On the web: Sign in then navigate to Accounts, then Auto-Transfer Rules. Click the toggle next to the Sales Tax rule.
In the Relay mobile app: Sign in then navigate to Move Money, then Auto-Transfer Rules. Under Consult your auto-transfer rules, find the Sales Tax rule and tap the three dots and press Deactivate Automation.
Only team members with Administrator permissions, or advisors with Super Administrator permissions, can create or edit auto-transfer rules.
What if the account receiving my Shopify payout doesn't have enough money?
If the Relay account that receives your Shopify payouts doesn't have enough money to cover the sales tax transfer, the transfer is not made.
What if Shopify is disconnected or still syncing?
Relay needs current Shopify data to set aside the right amount and explain what was set aside, so reconnect Shopify as soon as you can. Check the connection under Settings → Manage integrations. You can disconnect and reconnect Shopify there.
What Shopify data does Relay access?
Relay reads the order, payout, and tax-line information from Shopify to know how much to set aside; it does not store the store's customer information.
Frequently Asked Questions
Does Relay calculate, file or pay my sales tax, or tell me how much I owe? No. Relay sets aside the sales tax already recorded on your Shopify orders. It doesn't determine what you owe, and it doesn't provide tax advice. Talk to your accountant or a qualified tax professional about your sales tax.
Does the sales tax account cover sales from other channels? No. The sales tax account covers Shopify sales only. Sales tax collected through other platforms or in person is not included in the transfers.
Can I connect more than one Shopify store? No. One Shopify store can be connected per Relay business. To connect another store, you'd need a separate Relay business account.
Why does my sales tax account hold more than I expected? Two things can push the balance higher than you'd expect. Refunded sales tax is not subtracted from the transfers, so the account holds the full amount recorded on the original orders. And if you approved a one-time catch-up transfer during setup, that amount is in the account too.
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