Non VAT registered in UK

Highlighted
New Member
1 0 0

Hello all, Im very new to online selling but have many years in bricks and mortar selling. As a new company we have chosen not to register for VAT - not expecting to reach the VAT threshold for a long time!

How do I set my shopify store to not VAT registered? and therefore no VAT due on sales? 

 I can set my retail prices ok - but the invoice shows VAT charged - which it is not. so I cannot send out invoices that are inaccurate. we would have a legal problem as well as misleading customers. 

there must be other non vat regsitered traders out there - how have you solved this? 

the online chat person suggested i create a seprate collection for EU sales. not the point at all. 

Many thanks

Julia

0 Likes
Highlighted
Community Moderator
Community Moderator
3393 252 612

Hi Julia, 

Nick here from Shopify! 

Great question and that completely makes sense regarding the threshold. Shopify has a very helpful guide on non-USA taxes which goes through everything you would need to know about setting up taxes for your store. I also want to share another helpful guide with you for tax overrides and exemptions which goes into detail for VAT exemptions in the UK. You can see the guide by clicking here. There is one other potential workaround on this. It is a little more technical but it is definitely worth a look to see if it is what you are looking for and if it can work for you. It is an advanced tutorial and is not supported by Shopify, but if you think this could be your solution, you could reach out to a Shopify expert directly to help you with it as a small task. 

I hope this helps and does clear this up for you a little with the aid of the guides. Please don't hesitate to ask should you have any other questions about this or anything else. 

All the best, 

Nick

Nick | Community Moderator @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Highlighted
New Member
2 0 5

Not sure if you got this fixed Julia, I realise we're now 2 years on from when you posted, so I hope so! I've just started a shopify store, new to online sales and was having the same issue. I found your post in my research. I've just come off the customer support and it seems to have worked fine. So, for anyone finding Julia's post now ... Try this:  Go to your SETTINGS, found bottom left of your admin dashboard. Then SETTINGS>BILLING>Tax registration>I'm not VAT registered>SAVE. Then, and this is what I missed, you need to edit settings on TAX collected: SETTINGS> TAXES> Tax Regions. Scroll all countries making sure they say NOT COLLECTING. Mine was default set to COLLECTING under United Kingdom. To change this simply hit SET UP. It will show a default of 20% under the title COUNTRY TAX. Enter 0 here and then click SAVE. You should then be back to the same page that has the list of countries. All countries should show NOT COLLECTING. Below the list, there is also the section TAX CALCULATIONS. You need to uncheck the box "Show all prices with tax included". As I said, this appears to have worked for me. Hopefully it may help others. Of course be sure to check whether you should or shouldn't be VAT registered and all that ;) 

 

Good luck! 

Katy 

https://www.ktw.photography/

 

Highlighted
New Member
2 0 3

Thanks Katy, I was having the exact same problem but your post really helped.

Good luck with your new shop!

 

Chloe

Highlighted
New Member
2 0 5
That's great Chole :) good luck with your shop too.
0 Likes
Highlighted
New Member
2 0 1

Followed your advice.

All-day yesterday I was trying to wrap my head around this.

Cheers and good luck!

Highlighted
New Member
2 0 1

Thank you Katy, your post was very clear and resolved my problem

Ylenia

Highlighted
New Member
2 0 1
Hey KTWPhotography. Thanks for that useful piece of information. I am still building my website and was wondering if I should pay any tax. I am an International student living in the UK, planning on selling physical goods through shopify. I dont have much idea about any rules here. Could you please message me privately about the steps I should take and things I should do before my website goes online for the customers. Thanks a lot again.
0 Likes
Highlighted
Shopify Staff
Shopify Staff
627 58 158

Hi @GavinRufus,

 

I'm not @KTW_Photography, but I wanted to jump in here and offer some assistance. I'd recommend checking out the first post of the dedicated tax thread we offer for UK merchants. This post includes a number of resources that should help you with this.

 

I'd start by reading the links provided there from the UK government website, which outline rules on charging and paying VAT when selling goods in the UK. I would suggest checking out this link in particular, which specifies when you and your business must be registered for VAT to HM Revenue and Customs. They currently state:

 

You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt.

This means that if you are just starting out, you will likely not need to register for VAT and charge your customers VAT on their orders at this time. I'd encourage you to read through the different resources I posted in the taxes thread though to gain a more thorough understanding of the tax system in the UK for businesses, and what you obligations are and will be.

 

Kind regards,

 

Victor | Shopify Social Care

 

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Highlighted
New Member
2 0 1

Thank you so much, Victor. You made it crisp and clear for me to understand. So, I can start a business with a VAT number which is really a good thing. I was also wondering if I should register my company anywhere like the Govt website before I start? It is my own brand and will be selling custom made goods.