Hi, I am starting up a new shopify store. For all the regions apart UK I have "not collecting" taxes. But for UK is says "collecting" however my business is not a VAT registered business. Therefore I don't collect taxes. How can I disable UK from collecting VAT taxes? Please see a screenshot for reference.
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Hi there @Beekeeper!
Don here from Shopify.
If you'd like to set the tax rate applicable to the UK for your store to 0%, you can go ahead and click on 'edit' next to this region as shown in the screenshot you have shared here.
You can then set the rate being applied there to 0% in the subsequent menu.
We've got some more info on how taxes in the UK work and how to work with them here on another forum post of ours you can check out.
Let us know if you have any issues with getting that changed over or if there's anything else we can help out with.
Have you been selling with this business already elsewhere, or is this an entirely new venture?
Hi again @Beekeeper!
Don from Shopify once more.
If you have any questions about the rates of tax you should or should not be collecting, we would have to advise you to contact a qualified expert in your jurisdiction, as we are unable to provide advice on queries relating to legal or taxation matters.
They should be able to confirm for you how setting a tax rate of 0% to be collected would work in terms of the local laws and ordinances you would be operating under.
Feel free to check out the resources in the forum post I linked above, as there are some links there to UK-specific resources you might find helpful.
Are you still setting up your store to sell online or have you been doing business this way for some time?
I think that it depends on the laws of your jurisdiction. You should contact a specialist in the taxation field or to clarify the situation with tax agents. As I know they are able to give you such information. But I think that they won't allow you to set your tax rate on 0% but again depends on a country you're living in. Don't really know this rate affects tax return but you can use https://taxfyle.com/income-tax-return-calculator in order to calculate everything correctly. By the way, when my friend opened a shop here he didn't contact anyone and put the rate on 0% and the government did nothing to him.