US store with MCF in the UK and VAT bouncing with the 135£ limit

Trying to be short. We sell in USD and according us we bump on the hardcoded 135£ limit since the Brexit change. Collect VAT below and not above that limit. We are looking on how to collect VAT whatever the amount since the inventory is in the UK and we don’t ship from the US hence can’t be charged during import since there isn’t any. Shopify is stubbornly applying the rule. We are very surprised this seems to be unique to us. We have a hard time to believe no other company hit this block.

US based store. We plan to sell to UK customers via our US store.

Our inventory for the UK is in the UK (Amazon MCF)

We have the link for fulfilment up and running. We tried about everything we could imagine.

The UK product has a specific SKU and is identified for the UK (it isn’t a variant though if we find a solution that way we would be very happy)

  • We set ‘taxed an duties’ for the UK and added our VAT number for the UK
  • In Shipping and Delivery we have a line with the app linked to the shipping zone (SKU added)
  • In locations the app appears

When we place an order for a total amount below 135£ equivalent, everything goes fine, vat is calculated.
When we place an order for a total amount above 135£ equivalent then it skips VAT

We even tried the shipping and product override (via collection) under taxes and duties but this didn’t make a difference. Shopify continues to apply the rule.

We haven’t found a work around nor even an app allowing us to do so. We found several apps but they are all linked to companies that will take over the full tax filing etc (Zonos like) but we don’t need that. We just want to override the 135£ rule.

  1. is there a way to do so in Shopify (we didn’t find the correct setup ?)

  2. is there an app (again we didn’t find it)

  3. would it be possible someone codes this if it doesn’t exist ?

Thanks for your inisghts/help

Hi EricW,

To start with, since your goods are fulfilled from UK, it is not considered a distance sale and there is no £135 threshold. You are obligated to pay VAT on all sales as a US company with a UK VAT registration.

We configure taxes to dozens of companies daily and we are happy to help you as well. https://apps.shopify.com/eas-eu-compliance