The Vertex for Shopify connector supports multiple business entities, allowing companies that operate across multiple legal entities to map Shopify business entities (provided by Shopify) to Vertex taxpayers (from Vertex O Series). You can configure the taxpayer settings from the Vertex Tax & Compliance app in your Shopify admin.

These settings ensure the connector assigns each transaction to the matching taxpayer in Vertex O Series, improving tax calculation and reporting.

Shopify business entities

Shopify provides a predefined list of business entities, including the default store entity and regional subsidiaries (for example, Canada and the United States). These business entities are read-only, so you can't create or modify them in the connector.

You can configure the business entities from the Markets page in your Shopify admin. Assign each market to a single business entity available for Shopify Plus stores.

Vertex taxpayers

The connector provides a predefined list of child taxpayers for your configured company code in Vertex O Series. You must select a default taxpayer.

You can select only one taxpayer as the default, and the connector uses it for all unmatched scenarios.

Understanding mapping behavior

The connector applies a clear priority order to determine which taxpayer to use for tax calculation.

For the business entity sent in the Shopify order response, the connector first checks for a matching Shopify business entity. If it finds a match, the connector sends the child taxpayer code in the division field for the transaction.

If no match exists, the connector checks for a default taxpayer and sends that value in the transaction request to Vertex O Series.

If no matching or default taxpayer exists, the connector doesn't send the division field to Vertex O Series for tax calculation.

To ensure consistent mapping behavior:

• The codes must be unique across Shopify business entities and Vertex taxpayers.
• Duplicate codes are disabled to prevent ambiguous mappings.
• Use codes shorter than 40 characters and configure the same code as a child taxpayer under the parent taxpayer.

Configure the taxpayer settings

To configure the taxpayer settings, follow these steps:

1. In your Shopify admin, select Apps > Vertex Tax & Compliance.
2. Click Connection and Tax Settings, and then click Add Taxpayer.
3. Select the applicable Shopify Business Entities and Vertex Taxpayers.
4. If needed, select Default for the desired taxpayer.
5. Click Add.