I live in Lisbon -> Selling to EUA

[sofcastro]

Hey guys,

I imagine that this topic it's saturated,but i can't find the proper information.

I live in Lisbon,Portugal (Europe) and for now i will only sell to the USA. I never done this before,and i'm tryng to learning more and more,and you guys, had being amazing. Numb questions:

I really need to charge rates for every US state? Could i go ahead without that taxes definied?

Thank you so much.

I'm so lost with this part 😞

[Julie]

Hi, @sofcastro!

Julie here, from Shopify Support.

It's great to hear that you're considering how to set up taxes on your store. This is something that can often be overlooked so I'm glad you're doing your due diligence.

While Shopify gives you the ability to charge sales tax in the United States, whether or not you are required to collect this tax if you are selling from Portugal to the United States would be something you'll need to speak with a local tax professional about, especially since tax laws vary across countries.

However, I did manage to find a tax guide for Shopify stores in Europe by Sufio. While this article doesn't provide any tax advice, you might find it useful as it does further explain how sales tax laws work when operating a Shopify store from a European country; I think you'll find it really useful. Regardless, reaching out to a local tax professional for advice would be your best course of action. I'm sure they'll be able to provide the most precise answer. 

I hope this helps! 

[Sufio · Accepted solution]

Hi @Julie,

Thanks for mentioning Sufio in your response!

I just wanted to add that, in addition to the article you linked,  we have recently created a video on Setting up EU taxes in Shopify that @sofcastro might find useful:

As always, if you ever have any questions about Sufio, just get in touch with us at support@sufio.com and we will be glad to help 🙂

Have a great day,

Liam

Support Manager

Sufio

[sofcastro]

Thank you so much guys!

Best Regards,

Sofia

[meral__2020]

Hi Julie,

My question is that I set up USD payment option in my store but when i do a test it automatically charges taxes when I select USD option.

Since HST is only valid in Canada, for USD option this tax part must not come up.

How am I going to change this situation?

Thanks a lot

[Julie]

Hey, @meral__2020!

Is your business based in Canada and are you only wanting to charge Canadian customers taxes? If you head over to Settings > Taxes, which tax regions are listed? If you are based in Canada and you are wanting to charge Canadians sales tax, then you'll just need to make sure that this region is set to "Collecting" and that you have followed the steps for setting up Canadian taxes.

Now, if you're charging American customers sales tax, then it sounds like you have a shipping zone for the United States, which automatically creates a US tax region in your tax settings. Do you see the United States listed there? If so, is it currently set up? If it isn't set up and is instead showing as "Not collecting", then your American customers should not be charged sales tax. 

How sales tax is charged is always based on the customer's shipping address. This means that although a transaction may be processed in USD, if the customer is using a Canadian shipping address, then the appropriate Canadian sales tax will be applied.

When testing this out on your end, were you using a Canadian or American shipping address? 

[meral__2020]

Thanks for the reply Julie! I changed my settings for the USA to not collecting since I am based in Canada.