VAT Tax

Excursionist
42 0 6

I am only going to sell physical goods. My company is based in the USA. Am I still required to charge VAT tax if I sell goods to Europe or rest of the world for that matter?

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Shopify Staff (Retired)
Shopify Staff (Retired)
9 0 0

Hello,

Beth from Shopify here :)

Typically, you are only required to charge VAT if your business is located in a country that uses VAT and you are a VAT registered business.

When you create your store, the tax settings in your admin will automatically default to the tax rate for your location.  For most states in the USA, you are only required to charge tax on orders that are placed in the same state.

I recommend leaving the tax settings in your admin on the default setting which is based on the state tax laws for your zipcode, unless you have been advised by a tax professional that you need to charge your taxes differently.

Good luck and happy selling!

Beth
Support Guru | Shopify
support@shopify.com

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Community Manager
Community Manager
208 0 19

Hi, there!

I’m Melissa, a Shopify Guru.

While I would love to give you specific tax advice I would advise that it would be best to reach out to an accountant or tax specialist in your local area to discuss this further. This would be the best way to find out the Tax rates you need to be charging, this can depend on your products and other factors. Each tax/VAT rate is different for each business and for me to advise you would not yield you the best options.

Your best move is to talk to a tax expert about your business specifically, your products and where you want to sell. This way you won't get caught off guard when tax season arrives! There may also be some form members who could offer some further advice on this matter also. 

Also, here is a little more information on taxes and Non- US Taxes .

Hope this information helps! You can reach out to the Guru team https://help.shopify.com/questions if you have any questions.

Have a great day!

Melissa | Shopify Guru
  
 

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New Member
1 0 0

Hello,
 
Could somebody please describe to me the procedure of registering for VAT? I’m entering a UK market with my IT startup and try to gather any useful info about the topic now.
I’ve already found a website providing assistance with VAT registration. Looks pretty trustworthy. But I wonder whether there are any other stuff I should now before registration.
Looking forward to your replies.

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Highlighted
Shopify Partner
55 0 29

Hi Ebiz, 

Katy here from Sufio. Not sure if I'm able to help you much but as far as I know you should only charge taxes to European customers if you're selling digital goods. With physical goods, you should not charge taxes for overseas sales. 

Not sure if this helps, but here's our tax guide for Shopify stores selling in the EU

In any event, I would definitely contact your local tax expert on international transactions if I were you. 

I wish you all the best!

Katy @ Sufio, invoicing app for Shopify stores

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