Heya,
I’m a UK based seller and I’m trying to charge 20% VAT on my products and shipping. I’ve successfully added the VAT to my product price but it’s not adding VAT to my shipping price.
I was wondering how I go about changing this.
Thank you.
Hi there, @forrestlake . Thank you for taking the time to reach out to the Shopify Community Forums with your question around shipping and VAT!
For some regions and countries, shipping is taxed automatically where applicable. As you mentioned you are operating out of the U.K, the U.K is one of those regions where shipping will be taxed automatically. With that being said, you can create tax overrides for countries or regions where you charge taxes. We have a document here that goes into this in a bit more detail.
There are some regions that have certain tax rules around the products that are being shipped. For example, a business in the U.K may have some shipments charged at 20% VAT, while that same business could be shipping food stuffs that aren’t taxed, based on some internal resources I have here. At this time, having your shipping taxes be proportional to the tax rates for your products isn’t possible. However, we’ve been collecting feedback around this topic for some time, and this feedback helps keep our developers inform around the sort of functionalities that would bring value to our merchants. I’m happy to go ahead and submit a feedback form on your behalf to let our developers know that this functionality would be helpful for you and your business. I can’t promise what the outcome of the feedback sharing will be, but you can trust the appropriate folks on the inside will see it!
Hi, could I please have access to the document please?