How to set up EU taxes in your Shopify store in 2024
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- čas přidán 24. 07. 2024
- If you have a Shopify store in the European Union, you should understand when to charge VAT and which rate applies to which customer. Moreover, knowing when and how to register for VAT is equally important. In this video, you will learn how taxes work for stores based in the EU and how to set them up in Shopify correctly.
Read more in our VAT guide for Shopify stores in the EU:
go.sufio.com/vat-eu-shopify
Learn about Shopify’s VAT exemptions for businesses in the EU:
go.sufio.com/vat-exempt-eu
Sufio supports thousands of Shopify merchants with powerful, automated invoicing.
It doesn’t matter whether you’re about to launch your first ever store or you’ve already made it as a household name; Sufio’s customer success team will help you configure both your invoices and taxes with compliance in mind.
Start your 14-day free trial today to experience the peace of mind automated invoicing provides:
apps.shopify.com/sufio
⚠️ While we’re happy to make educational videos about setting up Shopify taxes, we encourage you to speak to a local tax authority regarding your tax duties.
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Here's what we'll cover in this video:
0:00 - Introduction
0:38 - When to charge VAT
2:20 - Charging VAT when selling B2C
3:27 - Micro-business exemption
4:13 - One-Stop Shop Union scheme (OSS)
5:22 - Charging VAT when selling B2B
6:13 - Setting up product prices
7:07 - Product prices when selling B2B
7:20 - Product prices when selling B2C
7:35 - Product prices when selling B2B and B2C
8:17 - Setting up EU taxes in Shopify
11:01 - Invoices for your Shopify store - Věda a technologie
Very helpful, well explained. Great video. Congrats & Subscribed
Finally a clear and thorough explanation about EU tax setting and how to apply it on Shopify. I have been researching this info for days when I finally came across your video. Thank you so much!
We're so happy to hear that you found this video helpful. Enjoy! 🤩
Great video, I was looking for this material for weeks!
We're happy to hear that Harreyn! Enjoy!
Very detailed and hughly educational video you have made here on this subject. Don't even get me started on the most soothing voice ever. Thank you so much!
Thank you very much! It can be a tricky topic to break down, so we're glad to see your nice feedback! You can always schedule a video call with our Support team, so you may get to hear more of Djimi's soothing voice :D
Thanks Man. that was very clear.
Thank you for making this video.
You're most welcome!
that was so helpful thank you!
Great video and very helpful. Thank you!
You're very welcome!
very good content
Nice calming and clear presentation Jimmy . I m a new start up and I've been trying to have contact the Revenue office here Ireland where I live for basic advice on this but they're website is very convoluted and they don't seem to be very responsive . Thanks for saving me a ton of stress.
Thank you! We appreciate when people let us know our guides have been helpful. Indeed, it can be quite difficult to compile the necessary information on what's needed in terms of taxes and each country presents it's own challenges in this regard. Our aim is to take some of that stress away and we hope that we have at least got you going in the right direction :)
Honnn EIRE!!
I ran into the same struggles as you i just stopped trying to contact them as it wasn't a good idea as i received different information from 3 different people working i the revenue offices !! is a joke really
Thank you so much for this video, it saved me hours of pointless Googling or going through videos that explain the most basic stuff that has nothing to do with actual taxes.
You're most welcome! We feel your pain - that's why we created this video to get straight to the point and help where it really matters. Glad it was useful for you! 🙂
Thank you for the video, I was looking for the VAT tax setup if my store is not located in the EU but deliverying to EU. Do you have a video on this?
Hey David! Although we haven't released a video specifically covering this topic yet, I want to assure you that we have plans to create one in near future. Also, we will be publishing a comprehensive VAT guide on international sales. To stay updated and ensure you don't miss out, please consider subscribing to our channel. Thank you for your support!
Hi, great video, nice overview. I wonder though, as explained in the second minute of the video, if the customer is an EU business (B2B sales), you need to verify the VAT number. But how do I do that on shopify? I can't find any way at all to add the VAT field to the checkout, let alone verify it. The only option I found is shopify plus, which starts at a few thousand dollars, which is silly just to check VAT number of the customer. Any help? thanks!
Hi Adam! That's a great question you have there.
I completely understand your concern. At tUnfortunately, Shopify does not currently offer an automated solution for this, however, Sufio has got you covered. We offer several solutions to capture and validate EU VAT numbers on Shopify, customized to meet your needs, even for stores that are not running on Shopify Plus.
Check out the VAT exempt EU business customers in Shopify article (sufio.com/articles/shopify/taxes/vat-eu-shopify/vat-exempt-eu/) to learn more and feel free to ask any additional questions at support@sufio.com. We're always happy to help!
Thank you! This is explained so well. What about UK shopify sites selling products to the EU? Are they subject to the same rules?
Thank you for your question! UK based stores are subject to a different set of rules and our team have recently published an article on this that may get you started in the right direction.
sufio.com/articles/shopify/taxes/vat-uk-shopify/
Hi Sir good video but please tell whats the rule for foriegners related to VAT because my shopify store is in EU but i live in India
Jimmy - great video thank you still confused. I’m just starting out. Do I need a vat id? I want to pod with printify or gelato in EU … I want to get going this month. Need help! Tia
Hi Tia! Thank you for your encouraging comments. It's true that many businesses begin their journey unregistered, particularly in their early stages, as they often haven't reached the threshold for VAT registration due to their initial sales volumes.
However, considering your plan to utilize print-on-demand services, I highly recommend reaching out directly to these platforms for detailed guidance. For your convenience, I've included some helpful documentation links: Printify (apisupport.gelato.com/hc/en-us/sections/10138021810194-Payments-taxes-VAT) and Gelato (help.printify.com/hc/en-us/articles/4483644252433-Which-taxes-apply-when-using-Printify-#h_01HD3M4267FSKKBEH1A2TMHXN2)
Hi, thanks for your video, it was very helpful!
I just have one question: do we need to create an VAT number for our store or should we use our personal ones? Thank you!
Hey @ritasantos5458! 👋Glad you found the video helpful! If you're operating as a business, it's recommended to use a business VAT number, not a personal one. If you're not VAT-registered, you won't have a VAT number to use. However, if your business has its own identification number, it should appear on invoices or sales documentation, serving as essential identification info. Hope this clarifies things! 🙂
Hi thanks for your video
But I didn't found what I'm looking for, can you help me?
I create two type of VAT to override the Shopify one's, but it doesn't work.
Hi there!
As this is quite a broad topic, I think the best way to provide some assistance on this will be to get in touch with our support team who will be more than happy to help you.
Reach out to support@sufio.com and we will take it from there :)
Great video, thank you so much!!! I have a question though.. my eshop is based in an EU country but I am using dropshippers from outside EU, so I have registered for ioss. The problem is that shopify accepts only oss numbers for EU businesses. So this means that I can't sell in EU countries, although I am an EU resident having a legal EU based business. Confusing! Is there a solution to this? What if I input my ioss number in shopify's oss field? Thank you in advance!
Have you ever found an answer to this problem?
Dropshipping in multiple markets like at a time in Germany and USA, then how the taxes and duties will be setup from the settings and taxes on individual listing , like when we list a product there is an option within the listing "Charge the Tax on this Product " . Are we suppose to activate this along with other Taxes and duties settings
Handling taxes and duties in dropshipping, especially across markets like Germany and the USA, can indeed be complex, but there are a few key points to remember. Firstly, if your business is VAT-registered, you'll need to set up your Shopify store to collect tax, which will be calculated based on your tax registration (either as a micro-business or under the OSS scheme). Generally, you should check the 'Charge tax on this product' checkbox for items that are taxable.
In dropshipping, it's important to clarify with your suppliers who is responsible for taxes, as this can vary. Also, for international sales, please remember that customs duties and import taxes are usually the buyer's responsibility, though some merchants opt to cover these costs. It's always a good idea to clarify this in your store policies. As tax laws can change and vary by region, and considering we are not authorized tax consultants, we recommend staying updated and consulting with a tax professional to ensure full compliance.
Hope this helps!
Hi thank you for this video it was very helpful , i have store in germany i want to know how to setup tax to sell to usa
Hi there!
At the moment, we don't have a specific guide for this but our team are currently working on a selling guide called VAT on International Sales, which will hopefully be released soon, so watch this space!
In the meantime, perhaps you can take a look at our EU tax set up guide to see if it can answer some of your queries.
sufio.com/articles/shopify/taxes/vat-eu-shopify/eu-taxes/
Nice video. Is there possible to have a word, like online live chat with someone from your team on that topic?
Absolutely, you can contact our Support team either by email, live chat or even arrange a video call with one of our support agents. For live chat, you can simply use the Support widget on our website or the Sufio app itself and one of our agents will be happy to help you :)
sufio.com/contact
Hi there, I have heard from multiple tax advisors in Austria that dropshipping and OSS are not compatible? You mention being able to use it once the 10.000 sales threshold is reached. Are there any official sources you could reference for this please? I would love to be able to use OSS and not have to tax register in each country that i sell to.
Hey! Whether dropshipping and OSS are compatible depends on where your supplier is based. For example, when dropshipping within the EU (where the supplier, seller, and customer are all EU-based), OSS can make things easier as there is no selling threshold for this type of transaction.
For more information on OSS and the threshold of €10,000, please refer to the official EU website: vat-one-stop-shop.ec.europa.eu/index_en. For more information on VAT on dropshipping within the EU, please refer to this link: sufio.com/articles/shopify/selling/vat-guide-shopify-dropshipping/#vat-dropshipping-within-EU.
Hi good video! But how do I set up the IOSS number in shopify (i.e. shipping from China to EU)?
Thank you! For those looking to set up the IOSS number and collect VAT on sales to the EU from outside the EU, the steps are as follows:
1. In your Shopify admin, go to the Settings > Taxes and duties page.
2. Under the Tax regions section for European Union, click Manage.
3. In the Shipping to the EU section, select Collect VAT.
4. Choose the Registration country where you registered for IOSS.
5. Enter your IOSS VAT number and click Collect VAT.
For more detailed information, Shopify provides an official help article that covers the process: help.shopify.com/en/manual/shipping/shopify-fulfillment-network/sfn-overview/fulfilling-internationally#using-the-import-one-stop-shop-ioss-scheme-when-you-ship-to-countries-in-the-european-union.
thank You for putting this video clearly, but how about store in France with registered VAT but shipping worldwide? thanking you in advance
Hi @FeeFr, I'm glad you found the video clear! If you're referring to a French store with registered VAT that ships globally, the basic VAT rules as discussed in the video do apply (2:20). However, for international sales, there might be additional considerations depending on the destination country. Could you specify your question a bit more? That way, I can provide a more precise answer. Thanks for reaching out!
Very good Video. I have question and dont know whether you have a video about it: I will sell products on Shopify that are provided by Printify. The price to my customers is included in their purchase price but Printify also charges me VAT. That would mean that I pay VAT twice, doesn't it?
Hi there!
It's difficult to give an accurate answer without some more details, but the good thing is our Support team love to discuss these things! How about reaching out to our team at support@sufio. com and letting us know a bit more about your business workflow and we can take it from there.
Alternatively, you can take a look through our guides here and see if your query may be answered:
sufio.com/articles/shopify/taxes/
Hi Jimi, amazing video! How do you set up taxes for when you dropship to the US while being located in EU? Thanks
Hi there, thanks for the great question!
When dropshipping to the US from the EU, sales tax requirements vary by state. You're generally only required to collect sales tax in states where you have a "nexus," which means a significant presence. This could be due to physical presence, like a warehouse, or economic activity, such as reaching sales thresholds. For most states, this threshold is around $100,000 in sales or 200 transactions per year. Once you hit this threshold, platforms like Shopify might issue a 1099-K tax form to help with your filings. Keep in mind, sales thresholds can differ-some states have higher limits, up to $500,000, and a few have no thresholds at all. It's crucial to consult each state's tax regulations to ensure you're fully compliant.
We've covered sales tax in the US in our latest guide: sufio.com/articles/shopify/taxes/sales-tax-shopify-usa/. Hope that helps!
@@Sufiosorry but do you have to pay taxes also in the EU country you're based in? Or only in the US once you exceed the threshold?
Hi, Thank you for your video! I'm a UK based business, not VAT registered because the sales are well below the 85k threshold but, I'm looking to start selling in the EU as well. Will I still need to register for VAT in the EU (one stop shop route)?
Hey @ruvimbomponda! 👋You're most welcome! If you're not registered for VAT, you typically wouldn't charge VAT to any customer, regardless of where they're located.
Once you become VAT-registered, goods sold from GB to customers in the EU are zero-rated. For those selling from Northern Ireland to consumers in the EU or to non-VAT registered businesses, these transactions are referred to as 'distance sales'. UK VAT is charged on these sales unless you surpass the EU-wide threshold of €10,000 (around £8,818). If your sales in a specific EU member state exceed this threshold, you'd need to register for VAT there and apply their rate. This is where the OSS can be a lifesaver, allowing you to handle VAT for multiple EU countries more efficiently. Finally, sales from Northern Ireland to VAT-registered businesses in the EU are mostly zero-rated.
For a detailed breakdown, do check our UK VAT tax guide: sufio.com/articles/shopify/taxes/vat-uk-shopify/ 👀
HI , Can you please tell how to deal taxes and duties while we are doing Dropshipping on Shopify.
Hi there! Dealing with taxes and duties while dropshipping on Shopify can get pretty complex. You'll need to collect and pay taxes based on where your customers are, like sales tax or VAT. Plus, when shipping internationally, your customers might have to pay customs duties, depending on their country's rules. It's always a good idea to consult a tax professional for detailed advice. Hope this helps!
Hello, i need to setup VAT for Germany only, but i'm only able to set it up for the whole EU.
Any ideas to fix this?
Hello Lukas! Thank you for reaching out. I understand your concern about setting up VAT specifically for Germany instead of the entire EU. In Shopify, when your store is based in the EU, the platform offers the option to set up VAT collection for the entire European Union. This is because VAT rules in the EU apply uniformly across the entire economic zone.
However, you can still specify your VAT registration type (such as Micro-business or OSS) in your Shopify admin under the Taxes & duties page. This ensures that the appropriate VAT calculations are applied based on your registration type.
While it is not possible to set up VAT exclusively for Germany due to the EU's unified VAT system, you can tailor the VAT calculation based on your specific business circumstances through the registration type selection. If you have any further questions or need assistance with VAT setup, feel free to email us at support@sufio.com.
Thank you it was really nice video, just can you show some sales examples to different eu countries and/or others
Thank you so much for your kind words! We can definitely look into creating some videos that includes sales examples to different EU countries and beyond. It's a fantastic suggestion and would certainly help in understanding how VAT applies across various scenarios. Keep an eye on the channel for future country-specific tax guides, and if there's anything specific you're curious about, let me know!
Thank you so much for your video! It was really helpful!
I have a few addtional questions, it would be great if you could have a look at it!
1. Would the 10,000 EUR threshold still apply if it is a German seller, but supply of goods are from China (Dropshipping), and end customer is EU private consumer? Can the German customer still use OSS or IOSS? I think OSS wouldn't be applicable for goods from third countries, only IOSS is possible. But does the German seller still need to register for VAT in other EU Member States?
2. When the Marketplace already uses IOSS, can the German user also use IOSS? When the Electronic Interface is a deemed supplier, does the underlying supplier (the German seller) still need to do anything?
3. You mentioned that no VAT should be contained in the invoices issued to the third country customer, but I wonder in case goods are dropshipping from a third country to another third country, does the German seller need to register for VAT in the third country?
Thank you in advance!🙏🙌
Hey there! Thank you for your questions! Let's dive into the details:
1. Dropshipping from China to EU consumers: For a German seller using dropshipping from China, the €10,000 threshold applies specifically to intra-EU sales and wouldn't apply directly to goods shipped from a third country like China. In such cases, you are correct that the Import One-Stop Shop (IOSS) is applicable for simplifying VAT obligations on sales below €150 to EU consumers. The OSS is indeed not applicable in this scenario. As for VAT registration in other EU Member States, using IOSS means you don't need to register for VAT in each consumer's EU country, as IOSS covers the VAT obligations across the EU.
2. Using IOSS when the marketplace does: If a marketplace is using IOSS and acts as the deemed supplier, then typically, the marketplace takes over the VAT responsibilities. As a German seller (the underlying supplier), you generally do not need to handle VAT registration or collection for these transactions, as the marketplace would manage all VAT under IOSS.
3. Dropshipping from third country to third country: When goods are dropshipped from a non-EU country to another non-EU country, the need for VAT registration in the third country depends on the local VAT rules of the destination country. If the transaction involves handling or storing goods in the destination country, VAT registration might be required. It is advisable to consult with a tax expert knowledgeable about the specific tax regulations of the third country involved.
I hope this clarifies your queries. All the best on your ecommerce journey!
So if the threshold is 85,000 and you are below that threshold you dont have to charge VAT, does that mean if you are shipping from UK to EU, will the customer receive the item without any charges on their end?
Hi there! The VAT-registration threshold of £85,000 applies only to the UK. So, if your sales within the UK are below this threshold, you don't need to register for VAT as a UK-based business.
However, when selling from the UK to the EU, we must follow GB tax regulations since it is no longer part of the EU. In this case, sales from the GB (England, Wales, or Scotland) to the EU are zero-rated, which means that you do not charge any VAT. But, do note that they may be subject to import charges that your customers may need to pay, such as customs upon arrival.
We've tried to cover UK-specific tax rules in our latest tax guide: czcams.com/video/1phb_f0xCAk/video.html
Hello! Great video, is VAT number necessary?
Thank you very much! Can you elaborate on your question? Do you mean if it's necessary to register for a VAT number? If so, it really depends on a number of factors mentioned in the above video. It may be a good idea to check our VAT guides that break down everything you need to know about VAT and see if the information there can get you in the right direction :)
sufio.com/articles/shopify/taxes/
Hey There ! i am still confused so i'll just tell you my exact situation could you give me solution please. I'm in lithuania EU, haven't published my store yet, my supplier is aliexpress, my type is B2C only, i have international shipping too, so now should i apply for VAT at first place and secondly what am i supposed to do with my taxes ? how does sufio help?
Hey there! Based on your situation, if you're planning to sell goods through your online store and your annual turnover exceeds €45,000 in Lithuania, you'll need to register for VAT and charge VAT on your sales. However, if you're below that threshold, you don't need to worry about registering or charging VAT. This means that both your sales within Lithuania and international sales will be tax-free.
And, Sufio can help you with invoicing by issuing compliant documents for your customers, making it easier to manage your bookkeeping and focus on developing your business.
Guss, from Breaking Bad.
thankyou guss
Such a great video, thank you so much! So to clarify - you don't need to charge VAT when selling to the US from the EU?
What about dropshipping from a supplier in China? Does the VAT stay the same regardless of where the product is shipped from?
Thanks so much for your kind words! I'm really glad you enjoyed the video.
To clarify, when you're selling from the EU to customers in the US, you generally don't need to charge VAT. VAT is only applied to goods and services within the EU, so it doesn't apply to sales outside the EU, like to the US. Just keep in mind that US customers might have to pay import duties or taxes when the product arrives.
As for dropshipping from a supplier in China, it's a bit different. The VAT treatment depends on where the product is being shipped. If you're dropshipping directly to customers within the EU, VAT rules still apply as if you were shipping from within the EU. This means the customer would need to pay any import VAT and duties when the product arrives.
So, in summary, you don't charge VAT when selling to the US from the EU. For dropshipping from China, the VAT rules depend on the destination. I hope this helps clear things up!
@@SufioDefinitely clears things up, thank you so much for the explanaition! The effort you put in to help and teach is really admirable, appreciate it a lot!😊
Hi thanks for this useful video!
I'm registered as micro entreprenuer (auto entrepreneur) in France (with a business adresse in France) but I live in Korea and I send my products from Korea to European countries.
Since I've just started, I don't have a VAT number which means that I don't collect VAT on my products.
However, recently I sent a product to my customer in France and she told me that she had to pay import VAT (TAV à l'importation) of 20% of the order price in order to receive the product.
Since I don't meet the threshold for VAT, I don't collect VAT on my products. But who do my clients have to pay import VAT when the product enters their country?
I'd appreciate it very much if you could give me your insights on this.
Thanks again for your videos!
Hi! Thanks for your kind words, I'm glad you found the video useful.
As a micro-entrepreneur in France, you're right that if you don't meet the VAT threshold, you don't need to collect VAT on your products. However, when you're shipping products from Korea to customers in France (or any other European country), those products are treated as imports. Import VAT (TVA à l'importation) is a tax your customer has to pay when goods enter their country from a non-EU country. This is different from the VAT you would collect if you were selling within the EU.
Import VAT is charged by the customs authorities in the importing country (in this case, France) to ensure that imported goods are taxed similarly to local goods. This tax is usually a percentage of the value of the goods, and since you're shipping from Korea, your products are subject to this import VAT when they arrive in the EU. That's why your customer in France had to pay the 20% import VAT on the order price to receive the product.
As long as you're shipping from outside the EU, your customers will likely have to pay import VAT. This is standard practice for international shipping. To help manage this, it's a good idea to inform your customers about potential import VAT charges before they make a purchase, so they're not caught off guard by additional costs.
You can also use shipping terms like DDP (Delivered Duty Paid) and DAP (Delivered At Place) to handle import taxes. With DDP, you, as the seller, cover all the costs associated with shipping the product to the buyer's location, including import duties and taxes. This way, your customers won't have to pay any additional fees upon delivery. DAP means that you cover the delivery costs, but the buyer is responsible for paying import duties and taxes upon arrival.
If you want to make sure your customers don't have to pay import taxes, you can go with DDP shipping. You can arrange this with your shipping carrier, but keep in mind that it might increase your shipping costs.
I hope this helps clear things up!
If just starting out do you think it's necessary to get a VAT registration ? Like do businesses start out like unregistered? Because trashing 2000€ just for testing a product seems a bit unreasonable , and i really dont get it since i see al these start dropshipping with €0 videos and none of those talk or even worry about taxes .
Because it is all fake.. Shopify won’t even let you sell anything without having a VAT number so yea it is obligated
Hello good morning, I sent you a email.
I saw some of your videos and I would like to know, if you do some service helping people setup taxes, shipping and other things in Shopify?
If yes how much it would cost?
Thank you have a great day.
Carlos da Silva
Hello Carlos! Thanks for reaching out. While we don't offer services for setting up taxes, shipping and other things on Shopify, we're here to provide insights and help with invoicing. If you have any questions related to that, we're most happy to help you.
Do I must charge a vat if 1.) Unregistered vat payer 2.) The small business exception to 10 000 euro 3.) I'm selling only directly to consumers in the EU, thanks for a response
Hey @beynod_ordinary! Generally, if you're not registered for VAT, you wouldn't charge VAT to your customers.
Nice video , what of i set it up so its a B2C in Germany so VAT is included with the price. But then lets say a business from France buys my product? Is it my responsibility to find a way to give them the VAT back? Or is it their responsibility because they purchased as a consumer? Thanks so much.
Hey @lukesp5721! 👋
When you're selling to consumers (B2C) in Germany, you would typically include VAT in the price as you mentioned. However, if a VAT-registered business from another EU country, like France, buys your product, this can potentially fall under the B2B reverse charge mechanism. In B2B cross-border sales within the EU, the reverse charge mechanism usually means that the buyer is responsible for accounting for the VAT in their own country, not the seller. This is why, if you know you're selling to a VAT-registered business in another EU country, you wouldn't charge them German VAT. Instead, you'd issue an invoice without VAT, capturing their VAT registration number, and they'd account for the VAT in their own country.
Hope that helps!
@@Sufio cheers, thanks so much!
Hello, if you can help me to understand I am new in all this. I have UK LTD company, and not registered for VAT. I want to sell expensive products online which I will by from UK suppliers, and sell only in UK. Can you tell me, do I need to charge tax to customer or I don't do that until I register for VAT?
Hey there! If your taxable turnover is below the VAT threshold and your business is not VAT registered, you do not have to charge VAT. This applies to the whole of the UK, including Northern Ireland, and means that you do not charge VAT regardless of where your customers are from. :)
@@Sufio Thank you, I really apreciate!
I think some information needs precise clarification! You DO NOT charge VAT to Business Customers ONLY if they have a VALID VAT NUMBER!
Because it sounds like All businesses outside of your country are eligible for VAT exemption.
Thanks for letting us know! While we mentioned in the video that VAT is not charged to "businesses with a valid VAT number", we will explore additional ways to clearly explain the conditions. Our goal is to ensure that the difference is easily understood, so thank you once again for bringing this to our attention. We'll work on making this distinction clearer in future videos.
Hello, I have a company based in the UK. and I don't have a VAT registration because I haven't reached the 85k threshold. I source products from China and Turkey and sell them to my customers in Poland.
So, I don't sell anything to the UK and I don't sell anything from the UK. Do I still need to pay VAT? Or am I only liable for corporation tax?
Your answer is very important. Thank you so much, your video is great.
Thank you for your kind words and for reaching out with your query, @fratsarap9727! Since your company is based in the UK and you're selling products to customers in Poland without reaching the VAT threshold in the UK, you do not need to charge or pay UK VAT for these transactions.
For your sales to Poland, you need to comply with the Polish VAT regulations. As you're importing goods directly into Poland from China and Turkey, you become a deemed supplier within the EU. This means, for VAT purposes, you're considered to have received and supplied these goods yourself.
Here’s how you can manage VAT:
1. For consignments under €150: You can opt to register for the Import One Stop Shop (IOSS). This registration allows you to handle VAT for all sales within the EU through a single portal. You'll need to appoint an EU-based intermediary to manage this registration.
2. For consignments over €150 there are a few options:
2.1 Let your customer handle the import VAT and customs duties upon receipt.
2.2 Alternatively, manage VAT and customs duties on behalf of your customers.
2.3 Another strategy is to import goods into the EU, pay all applicable duties at the point of entry, and then fulfill orders within the EU.
In any case, when you issue invoices for deliveries above €150, clearly indicate that VAT has been paid at the point of import and is not applicable to the sale.
Aside from VAT, you are still liable for corporation tax in the UK, based on your company's profits, which is separate from your VAT responsibilities.
Still, given the complexity of VAT rules across different countries, especially with recent changes post-Brexit, consulting a tax expert experienced in international sales and EU VAT regulations could provide further clarity and ensure compliance.
@@Sufio You are great, thank you very much 🙏
I can see that you have website and service. Are you accountant?
As much as we love to create educational videos on topics such as taxes and Shopify, Sufio doesn't offer accounting services. We are the leading invoicing solution for Shopify. You can learn more about our app, and services we offer on the Shopify App store: apps.shopify.com/sufio
Am I right that I can sell 10.000€ worth of goods B2C to each EU country without charging VAT?
The €10,000 threshold applies to VAT-registered businesses selling cross-border within the EU. It determines which VAT rate is applied: microbusinesses can charge their local VAT rate, while businesses that surpass the 'micro-business exemption' must charge VAT based on the customer's location.
If your business is not VAT-registered, you do not charge VAT. However, if your cross-border sales exceed the VAT threshold-which may vary by EU member state-you may be required to register for VAT in your customer's country.
is this IA??
If you're referring to "AI" as an abbreviation for "Artificial Intelligence," then no, it's me, Djimi. 😉