Re: Using Markets to sell in the EU & WHat Has Anyone Done About Taxes ?

Using Markets to sell in the EU & WHat Has Anyone Done About Taxes ?

creamcornwall
Shopify Partner
20 1 4

Hi everyone,

we took our shipping off our website to the EU as it was a minefield for a while, but now with Shopify's Markets, I think it's time to start shipping again and to the US. 
I am really confused about the Dynamic pricing, setting fixed product prices etc. I just want to know how others are selling? How do you deduct the VAT?

Sorry for seeming dense, but some advise would be much appreciated

Thanks in advance

Rebecca

Reply 1 (1)

RasmusKors
Visitor
1 0 0

To answer your question about dynamic pricing vs fixed pricing: it would depend on how you prefer to operate your website. Do you have a need to set your prices higher in some countries than others? Do you want to allow your customers to pay in their own currency or just keep everything in your main store currency? There is no right or wrong answer here, just a matter of additional setup work and potentially an upgrade to your existing Shopify plan to allow those customisations.

In terms of store localisation, Markets allow fantastic ways to localise the site to the target markets. Working with a number of Shopify stores I see that half keep the store currency while half allow customers to pay in local currencies. 

When talking about how to deduct VAT Shopify, has made it simple by providing under 'Settings -- Taxes and duties' buttons that will determine if you want to include or exclude tax based on your customer's country, as well as if your prices include or exclude taxes.

About selling to European Union. All goods imported from non-EU countries are taxed with VAT no matter their value. As I see that your store is based in the UK, then this also applies to you since the UK is no longer a Member State of the European Union.

 
Furthermore, non-EU Shopify stores can use the IOSS scheme to sell their products to EU customers. With the IOSS, you collect VAT from your customers on orders up to €150 at the moment of the sale, which means you have to include the VAT in your prices for orders up to €150 and also enable VAT collection on Shopify. This simplifies the buying process and shipping experience significantly because when the goods arrive in the destination country, they will be exempt from customs without any additional tax liability.
 
Since you're a non-EU company and if you want to use the IOSS, you need a fiscal representative because you cannot get an IOSS number on your own. For that, you can use a VAT intermediary registered in the EU such as Eurora’s IOSS service. With Eurora’s IOSS service, you get your IOSS number in one working day, and then you can start using the IOSS scheme on your orders up to €150. After that, IOSS VAT return is submitted on your behalf each month, according to the sales data you will share.
 
If you choose not to use the IOSS scheme and not to collect VAT yourself, your customers will be charged VAT upon delivery of the goods by the local Customs Authority.
 
Hope this helps!
Rasmus Kors | Tax Consultant @ Eurora
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