Transitioning to Zonos' tax IDs

Zonos takes full responsibility for U.S. sales tax when acting as the merchant of record (MoR). For Zonos Checkout domestic orders, we automatically handle tax calculation, remittance, and filing. For other integrations, such as Shopify and API integrations, Zonos as MoR tax services are available as an opt-in. Depending on your integration, this transition means you may no longer need your own U.S. tax IDs for transactions processed through Zonos.

Selling on multiple channels

If Zonos is your only sales channel, you no longer need to maintain your own U.S. tax IDs. However, if you sell through other channels, you will still need to manage, remit, and file taxes for those transactions separately using your own tax IDs. Zonos assumes responsibility only for transactions processed through Zonos.

Phasing out existing tax IDs 

The process for phasing out or canceling your existing tax registrations will vary by state. Below is a general guide to help you through the process:

1. Review your state registrations
   Begin by compiling a list of all the states in which you are currently registered for sales tax. Identify which registrations are used solely for Zonos orders. This will help you determine where a cancellation or suspension might be appropriate.

2. Consult state guidelines
   Each state’s Department of Revenue or Taxation has specific rules regarding deactivating or canceling a sales tax permit. Visit the official website or contact the state agency to understand the required steps—some states may require a formal cancellation request, a final return, or documentation that taxable activity has ceased.

3. Finalize filing requirements
   Ensure that you have filed all outstanding returns and settled any tax liabilities before canceling your tax ID. Some states may require a final “zero” return if you have shifted all sales to Zonos. Retain all records and confirmations for future reference.

4. Notify the state agency
   Where necessary, submit a formal notification to the state tax agency. This notification should include your tax ID number, a statement of your intent to cancel or suspend the registration, the effective date of the change, and any supporting documentation as required by the state.

5. Update your internal systems
   Modify your accounting and order processing systems so that they no longer use your own tax IDs for domestic orders processed through Zonos when Zonos acts as MoR. Ensure all integrations are updated to reflect that Zonos tax IDs will be used instead.

6. Coordinate with Zonos Support
   If you have questions about updating your systems or need clarification on any part of this process, please reach out to our support team. We’re here to help ensure a smooth transition as you phase out your own tax IDs for orders processed via Zonos as MoR.

By following these steps and consulting the specific requirements for each state, you can effectively phase out your own tax IDs and leave the rest to Zonos.

Important: Zonos will assume responsibility for U.S. sales tax compliance only from the date we officially become the Merchant of Record (MoR), as outlined in your order form. We have no responsibility for any potential or known sales tax liabilities for orders processed prior to this transition nor orders placed outside of Zonos. We strongly recommend consulting a legal or tax professional to assess and manage any exposure related to past transactions.

Frequently asked questions