Recently I discovered there is no VAT added to orders in my store that go to the UK that are over €197.
We ship from Dublin Ireland and I have a UK VAT number which has been inserted in Shopify since the store went live.
As far as I was aware as we have a UK VAT number we must charge VAT on all UK orders no matter the amount. Shopify doesn’t seem to think so and came back with the “If you do business in the United Kingdom, you need to collect Value Added Tax (VAT) on sales under £135.00.” Their support has been slow coming back with any useful info and overall poor.
I also found orders over €197 which had UK VAT on it
The UK VAT when used in distance sales is applicable for only shipments below £135. The default setting in Shopify is not to collect or calculate taxes on orders above the thresholds, i.e., Delivered Duty Unpaid.
You should ship only using Delivered Duty Paid. That requires 1) courier contract 2) configuration of your store to handle it. We are happy to help you at EAS Project, just get in touch.
@TeemuEAS is correct. If you are looking for solution with local couriers in countries you are selling to, please feel free to contact me at aggie.grabowska@global24.com
We specialise in cross-border from labelling, shipping, returns (also in bulk), warehousing, customs, and more. We also provide your customers with local return adresses and carriers so your international strategy is complete, especially important if you are selling on marketplaces too!