VAT/TAX with International Sales

New Member
3 0 1

Our store sells around the world. We have setup the EU VAT rules in Shopify but I wanted to know if there were any other VAT/TAX issues that we could be facing internationally? Does anyone know where I can even look to find out more about this?

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Shopify Staff
Shopify Staff
153 0 17

Hey Daniel,

This Wikipedia article might be a good starting point:

https://en.wikipedia.org/wiki/Value-added_tax

I would also recommend checking out Shopify's Accounting & Taxes forum to search or post specific questions in.

Then you can always add new countries to your tax settings in the Shopify admin, if necessary.

Hope this helps! :)

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Excursionist
10 0 8

Hi guys,

many of you experience the same problem with EU VAT handling. Since Shopify still not has a proper solution for this, I decided to set up a petiotion. Maybe we can convince Shopify together. Let's unite!

http://www.ipetitions.com/petition/shopify-eu-vat-exemption

#ShopifyVATexemption

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Highlighted
Excursionist
17 0 13

Hi Jeroen, 

 

Have you consider to use a compatible software solution to automate the sales tax mess?

 

Quaderno validates VAT numbers, issues tax complying invoices, automatically updates the sales rates when they change and notifies users every time they 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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Excursionist
17 0 13

Hi Daniel108, 

 

As I said to Jeroen, have you consider to use a compatible software solution to automate the sales tax mess? I work at Quaderno and we validate VAT numbers, issue tax complying invoices, automatically update the sales rates when they change and notify users every time they surpass a sale threshold. Also, with Quaderno tax reports, tax filing is a matter of minutes not hours. 

 

 If you have any questions, please feel free t reach out. I'm happy to help.

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Shopify Expert
564 24 89

I would recommend not getting tax advice from Wikipedia, forums or the like. You need to know how to handle your specific situation correctly and the only person who can give you qualified advice is a tax professional / CPA / whatever they're called in your part of the world.

 

As for @Jeroen 's petition: There are apps like Exemptify, B2B Handsfree (disclosure: I'm one half of A9 Design, the developers of B2B Handsfree), Sufio and others that let you validate VAT IDs as part of their feature set and configure customers as tax-exempt. Sure, it's not a core feature in Shopify, but VAT-exemption is not a core feature for a B2C store and that's what apps are for. So if you're selling to B2B customers within the EU, I think a couple of bucks for an app to solve this problem would be well spent.

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