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!
A Sales Tax account is a dedicated Relay checking account that sets aside the sales tax recorded on your Shopify payouts. Connect Shopify and select Create Account: Relay opens the account and creates an auto-transfer rule that moves each Shopify payout's sales tax into it.
This feature covers Shopify sales only.
What is a Sales Tax account for Shopify payouts?
A Sales Tax account is a separate checking sub-account within your Relay account, that gives your Shopify sales tax its own home. Every Shopify payout includes sales tax you collected from your customers. Lumping this sales tax in with your remaining payout leaves you at risk of being unprepared when time to file taxes.
When you set up a Sales Tax sub-account, Relay connects to Shopify, opens a new checking account named Sales Tax, and creates an auto-transfer rule that moves the sales tax recorded on each Shopify payout into it as it comes in. The sub-account appears in your Accounts tab with the rest of your business' sub-accounts. It's always a new account, never one you already have.
The sales tax account covers Shopify sales only. It doesn't include sales from other channels or all of your tax obligations. Relay doesn't determine what you owe, so talk to your accountant or a qualified tax professional about your tax obligations.
Who can set up a Sales Tax account?
Only team members with Administrator or Super Administrator permissions can set up a sales tax account. It's available on all Relay subscription plans once Relay identifies a Shopify payout in your account.
How do I set up a Sales Tax account?
Customers that have received an eligible payout from Shopify into their Relay account will see a banner on their Relay account home page prompting customers to begin set-up.
On the Home page, select Guide Me on the sales tax banner. The banner appears for Administrators and Super Administrators after a Shopify payout lands in Relay.
In the chat, select Connect Shopify, then Continue to Shopify.
On the Shopify page, choose the store to connect. On the Relay page, confirm which Relay business to link it to (if you have more than one business, you must pick one). On the confirmation page, select Close This Tab. Connecting doesn't move any money.
Back in the chat, select Create Account. Relay creates a new checking account named Sales Tax and the auto-transfer rule that moves the sales tax recorded on each future Shopify payout into it.
Catch up on past sales tax (optional). To set aside sales tax for Shopify sales since your last tax payment: inform the chat agent when you last remitted sales tax, and how much (if any) you have already set aside to cover this amount. Using your responses and Shopify account details, the agent will automatically calculate the suggested amount for a one-time catch-up payment to your new Sales Tax sub-account. Choose the Relay sub-account to transfer the difference from, and select Transfer.
Note: Connecting your Shopify store to your Relay account doesn't move money; nothing moves until you approve it, and only between your own Relay accounts.
What happens after setup?
Each time a Shopify payout is deposited, your new auto-transfer rule moves the sales tax recorded on that payout from your deposit account into your Sales Tax account. The amount comes from the sales tax recorded on the Shopify orders in that payout, so it changes with each payout rather than being a flat percentage.
If you have other auto-transfer rules on the same account, the sales tax transfer happens first and your existing rules apply to the remainder, so those rules may receive less on Shopify payout days. To learn how amounts are determined, how refunds and cancelled orders are handled, and how to review transfers, see How Relay sets aside sales tax from your Shopify payouts.
Things to Know
You can turn the rule off and on anytime. On web, go to Accounts then select Auto-Transfer Rules and use the toggle next to the Sales Tax rule.
In the mobile app, go to Move Money. Then, select Auto-Transfer Rules, find the Sales Tax rule under Consult your auto-transfer rules, then tap the three dots on the Sales Tax rule. Press Deactivate Automation.
If your deposit account doesn't have enough funds when a Shopify payout arrives, the transfer isn't made.
You can see, disconnect, or reconnect your Shopify connection under Settings then Manage integrations.
Only one Shopify store can be connected per Relay business.
Heads Up: Relay sets aside the sales tax recorded on your Shopify sales. It doesn't determine what you owe. Talk to your accountant or a qualified tax professional about your tax obligations.
Frequently Asked Questions
Does connecting Shopify move any money? No. Relay needs Shopify's order and tax information to determine the portion to set aside. Money moves only after you approve the new account, the optional one-time catch-up transfer, and the transfer rule, and it only moves between your Relay accounts.
I already have a tax account in Relay. Can I use it for Shopify sales tax? No. Setup creates a new, separate checking account named Sales Tax for your Shopify sales tax. It doesn't replace or reuse a tax account you already have.
Why don't I see the option to set up a sales tax account? Availability depends on whether Relay can identify a Shopify payout in your Relay account, and only Administrators and Super Administrators see the option. If you'd like to connect Shopify before your first payout lands in Relay, contact our Customer Experience team. No sales tax is set aside until a Shopify payout arrives.
Can I skip the one-time catch-up transfer and do it later? If you're still in the setup chat, you can ask for the catch-up again during the process. If setup is complete, you can manually transfer funds into your new Sales Tax sub-account. See How to Transfer Money Between Your Relay Accounts for more details.
Related articles
Talk to our Customer Experience team
If this article did not fully answer your question, our Customer Experience team is here to help.