Hi there,
Just wondering, can I not charge my EU/UK customers VAT and have them pay the duty when they receive the package? This is what I have been doing before the new VAT measurements, but I see somewhere that Shopify will automatically update tax settings to charge the VAT rate. Just wondering if there’s an option NOT charge the VAT?
Thanks
Good question Beikuo!
You can change the VAT rate to 0% if you wish. Then the VAT and duties would be charged from the end-customer by the customs with the help of the logistics company. We do not recommend this, however.
Opaque pricing, delayed delivery and unpleasant post-purchase surprises will result in dramatically increased returns and customers not returning. Improve the customer experience and retention is possible.
Not knowing the cost of the goods you are selling, but just saying there are solutions out there. Your logistics partner could provide a Delivery Duty Paid solution, where they would handle the importation and taxes and duties on behalf of the customer. Or, if your product pricing allows, utilise the IOSS. Both will require you to accurately calculate the taxes and duties and collect them from the end-customer at checkout, so you will need a tool for it.
EAS Solutions is a comprehensive VAT automation for e-commerce to EU end-customers. Automated and cost-efficient, we do recommend you get in touch with us.
Book a meeting with us here (link: https://meetings.hubspot.com/robert662/30-min-demo ) or check out EAS EU VAT automation (link: https://apps.shopify.com/eas-eu-compliance ) at Shopify App store