Charging VAT, duties, and fees to international customers

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I'm trying to make the shopping experience for my customers streamlined and smooth by having them pay for duties and taxes during their purchase as opposed to paying for the items on my store and then have them make another payment to the carrier to receive it. Is there a way to accurately charge customers duties and taxes, FedEx then charges my account with that D/T, and the customer receives their order with no hassle? 

 

 

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Shopify Staff
Shopify Staff
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Hey, JR W, 

Iain here, 

That's a really great question! The way duty and taxes work for international customers is that it is charged once it arrives in the country of destination. The major reasoning for this is so those national tax authorities can get their taxes and duties from citizens under their laws and jurisdictions. For that reason it's going to be hard to charge your customers for these taxes and duties ahead of time. To do it under a Fedex/ UPS account where they transfer the duty and taxes to that national tax authority when it arrives in its country of destination. Would require each shipping rate to be customized by the items and final destination, which currently our system doesn't support. That said, there is an app by Pitney Bowes that looks to give the estimate and streamline the duties and taxes for your international customers (here).

I hope that helps!

as always you can reach out to us 24/7 by phone, chat or, email (here)

Iain Russell || Shopify Guru 24/7 365
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Hi Iain,

Just curious:  if Shopify does not support calculating duties & taxes for non-US customers, why does Shopify include a field for each product's HS tariff code?  Is this simply for use by outside products (Pitney Bowes, Duty Calculator, FedEx WorldTariff, etc.)?  thanks -bryan

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Shopify Staff
Shopify Staff
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Hey Shoppy, 

Iain here, 

Great question! You nailed it there. We have that information there for integration with shipping partners to try and make the customs declaring of items easier for the merchant. Calculating the duty and taxes is a feature I'm sure we will see more as online commerce continues. It would be nice to see some changes to the way duty and taxes are handled for online transactions☺

And as always you can reach out to us 24/7 by phone, chat or, email [here

- Iain 

Iain Russell || Shopify Guru 24/7 365
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Hi,

I'm confused. You can set up a tax sum for each country on Shopify. If you know that China uses 12% import duty on clothes, then you can set China in the settings to 12%.

Is this a correct assumption?

thanks

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Shopify Staff
Shopify Staff
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Hey Bela, 

Iain here, 

Great question! Of course, all countries tax laws are a bit different. And we would always recommend speaking to a tax expert to make sure the correct amounts are being charged. That said, I do know a bit from my Canadian perspective here. You only charge tax in the countries you are doing business in. i.e if I have a location in Canada and a Canadian shopper makes a purchase they will be subject to Canadian taxes. If I have that same Canadian location but a customer orders from the United States there will be no taxes charged on the purchase. It will be up to the country of destination to charge import taxes and duties.

I hope that helps Bela! If you do have any other questions you can reach us 24/7 by Phone, Email, or Chat, (here)

-Iain

Iain Russell || Shopify Guru 24/7 365
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New Member
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Hello @JR_W,

 

You can use the FedEx Rates, Labels and Tracking app to solve this issue. The app allows you to select the duties payer as "Sender" or "Recipient" either for all orders or for each order separately. (see the image below)

Also, if required, you can use the app to add an extra amount to each of the FedEx shipping options either as a fixed amount or as a percentage amount.

 

Duties Payer.png

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