How do you handle UK orders over 135 pounds in your e-commerce store?

Accounting & Taxes
1

Hey everyone,

I have an E-commerce store based in Europe and about 30% of our turnover comes from orders from the UK (B2C). This makes the UK an important market for us.

Last year I registered my business in the UK and since then I have been paying the 20% VAT on orders under 135 Pounds to the UK and things seem to be going well.

Unfortunately I cannot say the same about orders above 135 Pounds, for these orders 0% VAT is applied and then the customer or we (depending on the incoterm used) must pay the tax and import duties to customs.

We choose to pay the import duties and taxes to customs ourselves (incoterm DDP), because this is customer-friendly.

Unfortunately, this way is not so friendly to our pockets. The import duties on our items are 12% which makes the orders >135 pounds hardly profitable for us.

I would like to know how fellow webshop owners with a similar situation deal with orders above 135 Pounds from the UK.

I would also of course greatly appreciate advice from experts or anyone with knowledge of Brexit and trade in the UK.

Thanks in advance.

2

Hi @okrts ,

With the recent addition of Markets, it’s possible to adjust duties, taxes, and product pricing for each market individually. I do believe you will need an Advanced Shopify plan to access these features.