We have had an email from Shopify about tax rates:
Keeping your tax rates up to date and knowing how much VAT to charge on sales in different EU countries and the UK can be time consuming, so we’ve streamlined the experience to make it faster and easier.
In your taxes settings, when you provide the information about where you’re registered in the EU or UK, Shopify automatically sets the tax rates that apply in the areas you’ve registered for - no more manually updating rates, no more deciding what rates to set based on your sales tax liability!
I sell books which are tax exempt, how will I manage this if the tax rate is going to be automatically set? Or am I missing something?
We are unable to ship items over £135 to UK from our Netherland warehouse DDP. Shopify’s registration based tax system assumes all items over £135 ship DDU. We can’t collect VAT tax and duties at checkout. Our current work-around for this is to add in an extra shipping fee to collect the 12% duties. Not ideal though.
The “Include or exclude tax based on your customer’s country” is a nice idea, but it doesn’t offer the flexibility needed.
Shopify curious if I’m not looking at all my options or if you have some updates to the registration-based tax settings in the works? Thanks!
Every small exporter in ireland selling to the UK now needs to collect uk vat @20% as import tax and give it to the uk government so its very strange that shopify doesnt enable us to show vat on all orders. It works for orders under £135net but doesnt show uk vat on larger orders. @Shopify_77 Is the only option to upgrade to Shopify plus? This is what i found about collecting import tax https://help.shopify.com/en/manual/taxes/charging-international-duties#orders-that-are-subject-to-duty-and-import-taxes
We just have GB VAT included in the price and recommend that customers get under the 135 GBP threshold. It’s not ideal. Hoping that Shopify fixes this soon, but I understand how complicated this is. Brexit made things very challenging.
Now full DDP is available foe Advanced shopify. And just additng 12 percent may not be the best solution - customs duties have to be added to shipping costs and merchandise cost for VAT to be charged on top of it.