How do I charge VAT if I am located in the US?

gorshkova
New Member
1 0 1

Hi guys, 

I noticed that my POD company charges VAT on all my European orders. I am located in the US and don't have VAT set up. Can you advise how you set up the store correctly? Do I need to register somewhere for VAT #? It's so confusing and I am so frustrated to keep losing $$$ :((( HELP!!!!

Sincerely, Tatiana 

 

Victor
Shopify Staff
Shopify Staff
765 66 190

Hi @gorshkova,

Thank you for getting in touch. Understanding taxes, especially when selling abroad, can be tricky, and we generally recommend speaking with a tax professional who can outline your obligations and make recommendations based on your own situation.

If your business is based solely in the US, and you do not house any stock or have any sort of presence in any EU countries, it's possible that you may not need to register for VAT. However, this is something you will need to confirm, and it may be a case of weighing up the pros and cons of doing so if indeed it's not mandatory. There are some blog posts and articles, such as this one on the Avalara website which can help you better understand whether or not you need to register for VAT in an EU country.

If you decide that you do need to register for VAT in the EU, we offer a guide on setting up EU taxes, and there are other blog posts on other sites that may come in handy, such as these:

I hope these resources are of some use to you, but as mentioned, we would always recommend speaking to a tax professional if you're unsure of your obligations. The Shopify Experts directory includes tax experts you could hire for a consultation.

Kind regards,

Victor | Shopify Social Care

 

Victor | Social Care @ Shopify 
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BiancaBlake
Tourist
18 0 2

We assist U.S. companies with all VAT questions about selling in the UK and EU. We have a ton of relevant VAT information on our website eurovat.com. We are also sending an "ecommerce new VAT rules 2021" newsletter next week. I am happy to assist call or email us! Bianca at Euro VAT Refund