- Short answer
- Yes, when Collect tax is on: Collective suppliers set it per retailer; the default is off in the US and on in Canada.
- Where suppliers set it
- Payments and taxes section of each retailer in the Collective channel
- Resale certificate
- Once the supplier has a copy of a certificate exempting the retailer, it collects no sales tax from that retailer
- Your customer's tax
- The retailer can charge it, as on any other sale
- Who remits the B2B tax
- The supplier, to the relevant tax authority
Who decides whether a Collective supplier charges tax?
The supplier does, one retailer at a time: in the Collective channel's Retailers list, select the retailer and switch Collect tax on or off under Payments and taxes. With it on, the tax shows automatically on that retailer's orders.
Whether a supplier must collect, and how either side files and remits, is each merchant's to verify with local tax authorities or a tax professional.
In certain jurisdictions, you're required to charge VAT or local sales tax on the B2B transaction that takes place when you supply a product to a retailer.
What is the default in each country?
| Supplier's store location | Collect tax default |
|---|---|
| United States | Off |
| Canada | On |
| EU countries and the UK | On with a tax ID in the Collective channel, else Off |
| Other countries where Collective can be used and suppliers might collect tax | On with a tax ID in your Shopify tax settings, else Off |
| Gibraltar and Hong Kong | Setting doesn't apply: no tax on Collective transactions between suppliers and retailers there |
Outside Gibraltar and Hong Kong, every retailer starts on this default, and the supplier can change it per retailer. Canadian, UK and EU suppliers must also verify their tax registration status to use the channel — see the Collective requirements.
What does the retailer see, pay and charge?
Retailers find each supplier's setting in the Collect tax column under Apps > Collective > Suppliers.
If a resale certificate exempts you from paying tax to a supplier, give that supplier a copy, and that supplier won't collect any sales tax from you. The Collective taxes, requirements, payments and orders pages we read on October 29, 2026 show no upload field for the certificate.
Your sale to your customer is separate; you can charge tax on it like any other sale.
The supplier passes the B2B tax to the relevant tax authority, and you may be able to claim it back as a credit, depending on your jurisdiction.
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