What countries can I enter tax overrides?

NineAmulets
Excursionist
49 0 11

If I'm shipping from the US, which countries I don't need to collect taxes?

 

Thanks you

Replies 3 (3)
Julie
Shopify Staff
Shopify Staff
1109 106 325

Hi, @NineAmulets!

Julie here from Shopify Support.

If you aren't sure which countries you should be charging taxes in, it's strongly recommended that you check in with a local tax expert. Since tax laws vary depending on where you're located, a local tax expert will be best equipped to handle any tax-related queries you may have.

That being said, merchants typically only collect sales tax in the countries they're based out of. It's also important to note that you will only be charging taxes in countries that you've added in your tax settings, which can be accessed in Settings > Taxes. From there, you'll see a list of countries and whether or not you're charging taxes in them. 

If you decide to only charge taxes in the United States, then you can choose to have taxes calculate automatically. The tax rates customers are charged will be based on whether you're registered to collect tax, and where you ship from and ship to. We have some information on how to set up US taxes here.

Since you'll be selling internationally, your customers may be responsible for additional duties and import taxes when they receive their shipments. As a business owner, there are a couple of ways you can handle this. We actually have some information on collecting international duties and import taxes here.

Nonetheless, I highly recommend getting in touch with a local tax expert should you still have questions around taxes and duties. 

I hope this helps! 

Julie | 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

PjEspi
New Member
2 0 0

Hello Julie

I am new to ecommerce, planning to start a dropshipping business I'm almost done with my website but not sure about on collecting tax. I'm located in Alberta Canada and my Target Markets are US, UK, Canada and Australia. I have a few questions here. Hope you can help me.

1. Do I need to collect taxes all the Countries where my customers are or just where I'm located?

3. Here in Canada we have different sales taxes. For example, here on where I'm located Alberta we have 5% sales tax. Do I need to register the other provinces too?

Thank you in advance Julie!

Rae
Shopify Staff (Retired)
Shopify Staff (Retired)
1166 95 322

Hi, @PjEspi

Rae from Shopify here. I'm helping out my colleague Julie with this thread, and I'm happy to lend a hand with the questions you have. 

Before we get started though, I wanted to welcome you to Shopify and ecommerce! I'm so glad to hear that you're starting a new dropshipping business. What types of products will you be selling?

In terms of your questions, as Julie previously mentioned, it's highly recommended that you speak with a local tax professional to help determine which countries you should be charging tax in. Tax rules and laws vary in different countries and provinces, so it's important to speak with a professional who has the most knowledge on this topic. 

In the meantime though, I suggest taking a look over the guide linked here, which outlines some general set up steps for taxes. Since you're based in Canada, our Canadian taxes guide (linked here) should also provide you with some helpful information. 

If you have any additional questions or concerns about taxes, please make sure to speak with a local professional about this, and they'll be able to offer you the best advice. 

Cheers, 

Rae | 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