Cross border selling from Australia to Europe and UK

[pallavi0301]

Hi All,

I am an e commerce brand based in Australia and have received a few orders and enquiries from customers in UK, France and Spain. I want to start running facebook ads and start selling in these countries but have no idea about the following:-

1) Should I add any apps or figure out a way to include import duties and taxes at check out for those customers or let them pay on their own on arrival ? Should I just mention the same at checkout page / cart page ? I want to have happy customers. Are there any helpful apps ? 

2) I am already using currency converter on my store . I dont charge taxes on products in Australia. Do I need to start charging that to sell in UK/ EU / US ? How do I do that from a single store ? 

3) Will I need to be registered as a tax payer in these countries where I sell ? Like for VAT etc ? Or is that only applicable if I cross a certain sale threshold in amount ? I understand Australia has tax treaties with most countries. 

It is so overwhelming to sell outside australia , and I want to remain compliant , but there is just so much potential that I dont want to miss out. Esp with the holiday season. 

Please help

[ProdSquad]

Hello @pallavi0301 

Here are some ways you can follow for the solution-

1. Handling Import Duties and Taxes-

• Duties and Taxes at Checkout: generally its a good idea to include import duties and import taxes at the checkout which is often called as DDP—Delivered Duty Paid. This manner, customers can know the total cost upfront and will not face any unexpected fees upon delivery. Many customers can  appreciate this transparency which leads to higher satisfaction.
• Apps you can consider:
• Zonosa : Provides solutions for the  DDP and can calculate duties and taxes at checkout.
• Shopify’s Duty and Tax: If you're using Shopify, it has built-in tools for handling international shipping and can include duties/taxes in the checkout process.
• Easy ship: This app can help to calculate the duties and taxes which offers a seamless shipping process.
• Checkout Messaging: If you decide not to collect these at checkout, clearly mention on the cart and checkout pages that customers will be responsible for duties and taxes upon their arrival.

2. Charging Taxes for UK/EU/US Sales

• VAT in the EU: If you are selling to customers in the UK and EU, you may need to charge VAT based on where the customer resides. Since you are not charging them taxes in Australia, you’ll need to set this up specifically for these regions..
• Single Store Setup: Many platforms allow different tax rates based on geographical location. You can clarify  tax rates for the UK, EU, and US.

3. Tax Registration and Compliance

• VAT Registration: Generally, if you have exceeded a certain sales threshold in the UK/EU , you’ll need to register for VAT in those countries. The threshold can vary, so check the specific rules for each country.
• Tax Treaties: While Australia does have tax treaties, your obligation to register for VAT or sales tax depends on certain factors such as local laws and thresholds.
• Consider Professional Advice: Given the complexities of international tax laws, it might be worth consulting with a tax professional or accountant familiar with e-commerce.

Taking these steps can help ensure a smoother transition into international markets.

Thank You, Amit