I'm in the process to set up an store with the intention of launching next month. I have tried to research information on the following but there is a lot of misleading information out there and can't find answers to my doubts.
So I come here with the hope that someone from Shopify support will clear things out for me.
I am resident in Ireland but my store will be selling worldwide (although mainly to US).
My understanding is that I cannot set up Shopify Payments as a gateway, and would have to choose a different gateway, correct?
Do I need to register myself as a business owner or sole trader in order to set up a payments gateway?
In the pricing section I can see that with the basic plan there is a rate of 2.9% + 0.30c per transaction with Shopify payments. I assume this amount will not be charged when choosing a different gateway but it'll be replaced by the rate of that third-party.
It also mentions a 2% "Additional fees using all payment providers other than Shopify Payments". That this mean that on top of the rate a third-party gateway will give, Shopify will collect an extra 2%?
Since I cannot use Shopify Payments...what would be the recommended / usual gateway provider? Important thing to consider for me: it's very possible that I'll move soon from Ireland to Andorra (another reason to not register a business in Ireland yet) so I'd rather have a gateway that allows me to process payments either if I'm in Andorra or Ireland. Would moving country (hence also bank account )require me to change a lot of things?
Also important for me, it's to choose a gateway that will pay me as fast as possible and that won't easily hold my funds or block me.
Taxes (VAT/Sales tax):
I am very confused about whether I have to pay taxes or where/when these need to be payed.
As someone in Ireland (EU) selling outside Europe, I understand that I won't need to pay VAT. My understanding is that I would pay sales tax in US if I had physical presence there. However, I don't.
That this mean that I don't have to pay/declare any taxes from my sales?
Would the final customer need to pay such taxes and when? My intention would be to charge full amount of products with taxes included but now I don't know if that's even possible in my scenario or what additional steps or problems could a customer have if they are buying "tax-free" products. (i.e unexpected additional charges when they get the product).
Also, if I'm selling products that I source from Chinese or US suppliers...I assume that I'm already paying VAT for that product so not sure if charging taxes (VAT/sales) to my sales should not even be considered as that'll be double-taxation.
Also, I read somewhere in documentation (can't find reference now) that sales from Ireland will automatically hold a 23% of the money for VAT purposes. Is this correct? Will 23% of my sales be taken even if those sales were made to customers outside Europe?
Apologies for long message but I'm breaking my head with these doubts as they are delaying my business a little!
My name is Lynn from Oceanpayment - an official partner with Shopify.
I can assist you with the payment part.
1, Do I need to register myself as a business owner or sole trader in order to set up a payments gateway?
This really depends on your tax purpose based on your registered country regulations. and also as a payment provider, we do need a certificate showing the ownership of the company. So as a business owner should be better for you in the long run.
2, It also mentions a 2% "Additional fees using all payment providers other than Shopify Payments". That this means that on top of the rate a third-party gateway will give, Shopify will collect an extra 2%?
As Oceanpayment instance, except for the basic fee, we do need to charge the extra 0.3% on behalf of the Shopify not 2%.
3, for your Registered Country, I would suggest you register in Ireland. it will be easier for you to have a wide range of payment providers to choose from. and also it depends on where is your operation and warehouse will be based? For the bank accont, it should be very easy to transfer the money from Ireland to any country.
Let me know if you have any questions to be anwsered regarding to the payment. or you can send me a email with your website and your payment enquiry see if we can help you. email address: email@example.com