Good News: Google Handles Sales Tax for US Shops Now!

If you sell things online in the US and show your products on Google (like in Google Shopping), there’s good news!

What Changed?

Before, you had to tell Google yourself how much sales tax to add to your product prices for different states and areas. It was a bit complicated to set up.

What’s New Now?

Google said: “Don’t worry about it anymore!” (For US shops only).

Starting October 1st, 2024, Google will automatically figure out and add the right sales tax for customers in the United States. You do NOT need to set up those tax rules in your Google Merchant Center account.

What Do You Need to Do?

Almost nothing! That’s the best part.

1. Make sure your prices are listed WITHOUT tax included. Show the base price of your item (like $10.00).
2. Google will do the rest. When someone sees your product, Google will show the price plus the estimated tax for their location (like “$10.00 + tax” or sometimes an estimate like “$10.85 estimated total”).

Why is this good?

• Less work for you! No more confusing tax settings to manage in Google.
• Clearer for customers: People see a better idea of the final price they’ll pay, based roughly on where they live.

Important Notes:

• This only affects shops selling in the United States.
• You are still responsible for actually collecting the right sales tax from customers and sending it to the government. Google is just helping show the estimated tax on your product listings.
• This starts October 1st, 2024. After that, Google will ignore any old tax settings you had for the US.

In Simple Words:

Google is making it easier for US sellers. They’ll add the sales tax numbers to your product listings automatically. You just focus on your products and prices! 🙂

Go deeper: Google’s announcement on automatic tax handling