How can I use Shopify Markets for off-shore commerce in the UK?

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Topic summary

UK-based merchant seeks to expand offshore sales using Shopify Markets with Delivered Duty Paid (DDP), aiming to charge all duties, taxes, and shipping at checkout. Key question: does Shopify Markets calculate destination VAT/sales tax, or only import duties—since excluding VAT could force customers to pay on delivery or require multi-country VAT registrations.

Clarification: Shopify Markets’ duties calculator includes both import duties and destination taxes. Example provided: for Australia, duties don’t apply below $1000, but the 10% Australian tax is still calculated and added at checkout.

Outcome: The provided clarification confirms Shopify Markets can add both duties and taxes at checkout to support DDP-style fulfillment and reduce delivery friction. The original poster accepted the answer; no unresolved issues were raised.

Summarized with AI on January 21. AI used: gpt-5.
1

Hi

We’re a UK-based store and I’m reaching out on here on the off-chance that someone (hopefully in the UK) has some practical experience in using Shopify Markets in a live environment.

Our goal is to increase off-shore commerce by including the option to pay all taxes and duties at checkout along with shipping. Our carrier supports delivered duty paid (DDP) deliveries and I had thought that Shopify Markets would offer the solution to this. However, upon some further investigation, I’m unable to clarify from the documentation whether the tax calculation includes non-UK VAT (or sales tax) for the destination county or whether it’s solely import duty.

My understanding is that if VAT isn’t included, as an organisation we’d need to register for VAT in every country we wanted to calculate taxes for, something which isn’t very practical. (Or if we didn’t, customers would be liable to pay this on delivery which creates friction to the order).

Has anyone overcome this either with Shopify Markets or another app?

Nick

2

The duties calculator in Shopify Markets includes both duties and taxes calculations. E.g. if you’re shipping to Australia duties don’t apply until the order is $1000. But even if you ship an order below $1000, the 10% Australia tax will be calculated and added to the order.

2 Likes
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Amazing - thank you for the clarification.