Need to register tax numbers for collecting import duties in checkout?

[Marija_Coutured]

Hi everyone,

We upgraded to Shopify - Advanced to, besides other benefits, collect import duties in the checkout.

Upon setting it up, it looks like we need to also collect taxes in those countries since the "Duties" section in checkout always shows zero.

Does that mean we will need to register a Tax number in any country where we want to collect import duties?

Considering the costs of registering a tax number in all the countries we ship to, and the cost of filing tax returns, it doesn't seem like a profitable project, but I might be wrong.

We don't meet the sales threshold in any of the countries we ship to that are out of the EU.

Important to note: we're based in the Netherlands and have an OSS NL VAT number.

Does anyone have experience with this? Do we have to register a tax number in any country where we want to collect import duties so the customers get a DDP shipment?

Thanks in advance.

Regards,
Marija

[TeemuEAS]

Hi Marija_Coutured, 

A lot depends on the value of your goods. UK has a simplification for below £135 shipments and it is certainly worth registering for if you can take advantage of it. The same threshold applies for duties, regardless of UK VAT registration status. 

US and Canada have a duty threshold of 800 dollars both (different dollars that is). If your goods are below that value, no duties apply. 

And now for the solution: Courier Delivered Duty Paid deliveries. You have to collect all taxes and fees at checkout as the courier will pay them at destination customs and invoice you for them. The end-customer does not have to pay extra on delivery. This delivery works without value thresholds, to all the countries. If you take advantage of the UK VAT, you can use a cheaper logistics service. 

We are happy to help at EAS Project, even if you would be outside of our scope of services for now 🙂 Our app is here: https://apps.shopify.com/eas-eu-compliance

[EdgeCTP]

Hi Marija,

There are few apps available on the Shopify app store to simplify this process for the store owners. I believe you understand that your products should be fully classified while selling globally.

Such apps including ours calculate duties and taxes at checkout, collects these fees from your customers, and works with shipping partners (such as FedEx, DHL, UPS) to handle customs and duties worldwide.

This means you don't need to register for tax or customs in each country you ship to. This can save you the significant costs and administrative burdens associated with tax registration and filing in multiple countries.