How is VAT managed for UK-based dropshipping?

Accounting & Taxes
1

I am based in UK. I dropship from outside the EU into UK northern ireland and EU. How is VAT dealt with? Does Spotify deal with VAT for us?

2

Hello David1601957!

  1. From the Shopify admin, go to Settings > Taxes.
  2. In the Tax regions section, beside United Kingdom, click Set up.
  3. In the VAT collection section, click Collect VAT.
  4. Select a country in which you are registered.
  5. In VAT number, enter your VAT number. If you have applied for a VAT number but don’t yet have one, then leave this field blank. You can update it when you receive your number.
  6. Click Collect VAT.
  7. Optional: To add more regions and account numbers, click Start collecting VAT

Hope this helps

If you need further assistance can reach out to us

Thanks

Solution1

3

Hey there,

I’d love to share our Brexit Guide for Shopify merchants with you, I hope it will help to find answers to some questions.

If you have any questions regarding invoicing, feel free to get in touch with us at support@sufio.com

All the best,

- Lenka from Sufio

4

From 1 July 2021, the Mini One Stop Shop (MOSS) becomes the One-Stop Shop (OSS). The VAT OSS simplifies Value-Added Tax (VAT) obligations for businesses selling goods and services cross border to final consumers in the European Union (EU). Within the OSS, there are two schemes, the Union scheme, and the non-Union scheme.