14 0 0

Hi everyone,


Just a quick question, hoping you may be able to help.


I am about to launch my store selling products via. Modalyst. My company is set up in the UK as a private limited company. The supplier I am using from Modalyst is based in the US, would I have to pay sales tax for the US or for the UK? How would I set this up?



Shopify Staff
Shopify Staff
935 105 164

This is an accepted solution.

Hi @trendhealthy,

Hyde here from Shopify.

That is a great question, and especially relevant given the aftermath of Brexit. While Shopify cannot replace a local tax expert, we have provided a good starting document which you could consult right here. It seems that taxes in the UK will be charged at the point of sale. According to our document:

The UK VAT laws that came into force on January 1, 2021 result in new VAT requirements for sales equal to or less than 135 GBP.
If the sale of goods is equal to or less than 135 GBP, then you must register for VAT in the UK. In this case, VAT is collected at the point of sale and remitted by the merchant. If you use registration-based taxes and have a UK VAT registration, then VAT will be applied to your sales to customers in the UK.

All that said, you would be better off consulting a tax authority or professional.

I hope that helps!

All the best, Hyde.

Hyde | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog