can you explain this sentence from this link https://www.shopify.com/blog/brexit-impact-ecommerce?&u

ali426
Excursionist
18 0 1
  • Merchants need to collect VAT on orders shipped to the UK below £135. However, if you’re a merchant using an Online Marketplace(OMP) to supply imported goods with a value below £135 to UK customers, the VAT liability will be shifted to the OMP.

          Does that mean if I have my own store and use for example 

  • Aliexpress 
  • Alibaba
  • Spocket 
  • cj dropshipping 
  • banggodd
  • etc....

          platforms  like these to ship to my customers  that I am not  forced to register for VAT or collect VAT from my customers 

          and this liability belongs to these platforms 

         or I understood wrong??

       

  

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DigitalArtisans
Tourist
166 13 30

Hello @ali426 !

 

Yes, you understood correctly - if you’re a merchant using an Online Marketplace (OMP) to supply imported goods with a value below £135 to UK customers, the VAT liability will be shifted to the OMP.

 

So the liability goes to the Online Market Place - not to you.

 

Thanks,

Digital Artisans

Hatim Ayoub | Designer | Developer
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ali426
Excursionist
18 0 1

@DigitalArtisans 

now I work spocket to supply my product so I can ship to UK and no need to collect anything from my customers

and by the way I have ltd company based in UK does that differs anything or we still with the same situation 

one more thing that mean if I work with ALiexperss or spocket I can ship worldwide without be concerned about any type of sale taxes right?

 

 

DigitalArtisans
Tourist
166 13 30

Hello @ali426 ,

 

Yes, you can ship to the UK - no need to collect anything from the customer as far as your goods are below £135.

As long as the criteria is followed its same for company or individual.

Regarding shipping goods worldwide, sales tax will vary from country to country – you’ll need to check on that.

 

Thanks,

Digital Artisans

Hatim Ayoub | Designer | Developer
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ali426
Excursionist
18 0 1

thank you very much @DigitalArtisans 

I only had enquiry about dropshipping services  like 

wiio

ecomdash

etc..

these sites source to your store from china manufacturers to their warehouse 

check quality then fulfill the orders to your customers ,

so do we deal with  DS services like Aliexpress and cjdropshipping

or here we have a different case and now we should deal with taxes and collect them from customers 

 

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Hyde
Shopify Staff
Shopify Staff
869 98 155

Hi @ali426,

Hyde here from Shopify. Great question!

That document does indeed say that "Orders above £135 will be subject to duties and import VAT", whereas orders "using an Online Marketplace(OMP) to supply imported goods with a value below £135 to UK customers, the VAT liability will be shifted to the OMP".

This doesn't necessarily preclude you from registering for VAT, because if the orders are above £135 I think you will be liable for VAT yourself.

All that said, you will need to consult with a tax expert on this issue to be absolutely clear on UK tax legislation.

All the best, Hyde.

Hyde | Social Care @ Shopify 
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