I’m trying to configure settings for tax in a new store set up. I’m not VAT registered. But the international settings are obviously complex and should be done correctly. How did Uk sellers on here establish their settings in their beginnings. I discovered that for Europe it will surely require yet another subscription to a service such as EAS who handle it entirely and invoice me for whatever is required unless someone has a better idea. However regions such as the US are another problem. I understand that it varies from state to state and that it may not be an issue unless some exceptional thresholds are passed. I sell on Etsy and they must collect and remit those taxes on my behalf. Obviously as an organisation, Etsy exceeds those thresholds and that could explain it, but any clarification would be appreciated. Then of course there is Australia, Japan et. Please do not post links to shopify pages that I have already read in detail and obviously are not explaining properly or I wouldn’t be here.
There really is no reason for you to struggle with the settings when we are around ![]()
US has a duty threshold of 800 USD, anything below that is without duties. Compare that to EU 150€… The state nexus vary from 250 sales volume to 100 000 USD annually, in other words when your own store is beginning to hit those you have a positive problem in your hands. There are very good services such as Sidr Tax (https://apps.shopify.com/sidr-tax) to help you out with that. Australia’s tax registration threshold is 75 000AUD annually.
US GST is in the region of 6-8% and people in US are more accustomed to having that added at checkout or collected on delivery. Again, compare that to Hungarian VAT of 27% and it is understandable why people are reacting differently.
You are 100% correct about Etsy. They, as a marketplace, are liable for the tax compliance.
If you have further questions, just reach out to us / book a meeting. We are happy to guide you through the maze.