I am trying to find more information on the legalities/proper way to go about shipping to countries with VAT.
We are a US-based and registered store. Do we need to collect VAT from EU customers? If so, is there a proper way of reporting and submitting said VAT taxes to the proper entities overseas?
Or is this simply recommended? I know that in some cases the "letter of the law" differs from what happens in practice.
Nick here from Shopify.
This is a great question as taxes can be difficult to figure out even on the best of days.
It is something which I will recommend you talk to your local tax office or a professional accountant about as they would know the tax laws best for where you are operating from. From my experience, I don't believe you need to charge VAT to a European customer if you are selling from the USA, but I might not be 100% on that either. It would definitely be best to talk to a professional in the area about this to be sure.
There is however a helpful guide for how to set up your taxes to apply them automatically from the USA. You can see the guide here.
Hope this helps!
All the best, Nick