When merchants sell on multiple sales channels, it can be difficult to determine whether the merchant or the sales channel is responsilbe for remitting sales taxes. For example, most marketplaces are the liable party for sales tax, and should be excluded from merchant sales tax filings.
As of the 2021-07 version of the REST and GraphQL orders APIs, a new field is now present on the
channel_liable. This field indicates whether the sales channel that submitted the order is liable for remittance for each tax line. It can contain the following values:
true indicates that the channel is responsible for remittance of the tax line.
false indicates that the channel is not responsible for remittance of the tax line.
null indicates that it is unknown who has the responsibility, and that the merchant should check with a local tax authority to determine their tax obligations.
channel_liable field lets developers inform merchants that another party is responsible for sales tax remittance, which then helps merchants better understand the tax that they are responsible for.