Financing, tax rates, and accounting
As I'm sure a lot of us have, I just received the email from Shopify informing me they are upgrading my stores to Shopify Tax on Monday.
I have completed the opt out form because I can not see the benefit for us. We only ship within the UK, all our products are on the same VAT rate, our tax/accounting information is managed through a central system separate to Shopify.
But seriously help me out guys, am I missing something here that would be a reason to use it?
Hi Lucy,
Thanks for the question.
Shopify Tax offers VAT invoices, smarter calculations (proportional shipping, smart product rates, auto-updated rates, more accurate reports because VAT calculations are better), and liability insights for merchants as they expand into new regions.
We're going to be investing in this product and will be releasing better features over time.
Shopify Tax is completely free until Jan 1, 2025- you can switch at any time, and there's no commitment to be on Shopify Tax. It's also free for your first 100k of GMV, every year. After that point, we have the pricing structure laid out in the email, but we've been intentional about putting caps on percentages and overall fees to make this service merchant friendly.
In the end, this product gets you VAT compliance without needing to think about it as you grow, for a far better price than other solutions with these offerings, all natively.
If your current solution is better and cheaper, you can always switch down the line- but my recommendation is to try it out, and if you don't see the value, downgrade closer to Jan 1st, 2025 so you don't get charged. Hope this helps!
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