Jersey VAT

New Member
1 0 0

When a cusotmer orders from jersey with the billing and shipping address down as Jersey why does shopify not automatically deduct the VAT? 

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Shopify Staff
Shopify Staff
552 31 66

Hey, Amanda!

Katy here from Shopify. Thanks for posting. ?

Generally speaking you will only need to charge VAT for certain locations if you have a physical presence or Nexus with this location, or if taxes are determined by the state on a destination basis. 

If you do need to charge tax for certain states, you can then set this up within your admin > settings > taxes. We have a guide to help with this here.  Taxes may also not appear on the invoice, if you have them set to be included within your product pricing

However if you are in any way unsure we do recommend to consult with an independent tax expert. In the mean time however, perhaps some of our community members can chime in with their own input too. 

I hope this helps!

Katy
 

Katy | Social Care @ Shopify
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Excursionist
17 0 13

Hi Amanda_Mitchel1, 

After the Wayfair decision, physical presence is not the only criteria to have a nexus in some states, but also the amount of sales and the number of transactions. In case you have nexus then you need to check if your products are taxable in that state and if so, charge/collect sales tax.

 

To help you to do I'd recommend you to use a piece of software that calculate state and local sales taxes automatically such as Quaderno. Quaderno automatically charges the right sales tax rate in every sale, updates the them when they change, and notifies you every time you surpass a sale threshold. Also, with Quaderno tax reports, tax filing is a matter of minutes not hours.

 

Disclaimer: I work at Quaderno. If you have any questions, please feel free t reach out. I'm happy to help.

 

 

 

 

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