Thank you for your question! Generally, businesses need to be registered before they can apply for a VAT number. The process usually involves registering with the relevant government authorities, and requirements can vary depending on your location and business type. Once registered, you can apply for VAT with the tax office. For precise steps and requirements, we recommend consulting with a local tax professional or the appropriate government agency. We're here to support you with any inquiries related to our services!

@@Sufio​​⁠thank you so much! How do I register my business in Germany? Can you help me with that? And even if I don’t earn in the beginning at all, I still have to register right?

Hey! When selling to consumers (B2C) or businesses (B2B) from the EU directly to the UK, you must register for a UK VAT registration number. The applicable VAT rate is based on the total value of the order. Orders worth less than £135 are subject to 20% VAT at the point of sale. Orders worth over £135 are subject to import VAT rules.

Thank you for your question! Generally, if you're a non-VAT registered self-employed person in the UK selling to the UK and the USA, you might not need to register for VAT unless your taxable turnover exceeds the VAT threshold. However, specific rules can vary, especially with international sales. For accurate and personalized advice, it's best to consult with a tax professional or HMRC. If you have any questions about our services, we're here to help!

Sorry about that! The first 5 minutes were just a warm-up. The real fun starts after that! 😄 Thanks for sticking around!

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.

Because it is all fake.. Shopify won’t even let you sell anything without having a VAT number so yea it is obligated

Thank you for reaching out! It's common for many small businesses, especially when starting out, to operate without VAT registration if their turnover is below the VAT threshold set by their country. This can be a practical approach when testing a product or business model. However, VAT registration can offer benefits, such as reclaiming VAT on business expenses. The decision depends on your business plans and specific circumstances. I recommend consulting with a tax professional to understand the implications and whether VAT registration is right for your situation. They can provide guidance tailored to your needs. We're here to help with any other questions you may have about our services!

Thank you for your question! Tax regulations can indeed be complex and vary greatly from country to country. Since we aren't able to provide detailed tax guidance for every country, we highly recommend consulting with a certified tax professional in Qatar. They will have the expertise to give you accurate advice tailored to your situation, especially when operating a Shopify store in the Netherlands.

Thank you for your question! VAT rules can be complex, especially for international sellers. If your Shopify store is based in the EU but you're located in India, you'll need to consider the VAT regulations in the EU country where your store is registered. Generally, VAT may be applicable on sales to customers within the EU. However, the rules can vary depending on where your customers are located and where you store your goods. It's best to consult with a tax professional familiar with EU VAT laws and your specific circumstances to ensure compliance. They can provide guidance tailored to your situation. If you have any questions about using our services, feel free to ask!

Hey there! I totally get how confusing tax regulations can be, especially with all the information out there. For your digital products, since you're in Canada and selling to EU customers, you do need to charge VAT, regardless of how much you're making. The EU has specific rules for digital products (like e-books, online courses, etc.) that require sellers from outside the EU to charge VAT at the rate of the customer's country. This means you’ll need to register for VAT in an EU country to comply with these rules. When it comes to the merch you'll be launching with Printify, the situation is a bit different. If you're below the VAT threshold for distance sales, you don’t need to charge VAT initially. But once you exceed that threshold, you’ll need to register for VAT and start charging the local VAT rates, using the IOSS scheme. I hope this clears things up a bit! However, I highly recommend reaching out to a licensed tax advisor to ensure you’re fully compliant with all regulations and to get advice tailored to your specific situation.

@@Sufio This helps me a lot, thank you for your response!

Hey man I live in New Zealand and I'm about to launch my store soon as well. I'm not sure how different Australia is from New Zealand when it comes to integrating a business but usually its very similar. In New Zealand it is compulsory to integrate a business no matter how small it is, in Australia I think its not mandatory but it does make it easier when you have to pay taxes. If you don't have one you'll probably have to pay the highest tax percentage which is 47%. I paid about $150 for the trademark of my brand name and for the business integration to make it legal in New Zealand. By getting your business integrated you will get your business number and an IRD number that will help you with taxes and end up paying less. A side note to the perspective of what you said dropshipping is is pretty much right. If you want to only make a bit of side money from it you are always pretty much chasing new products and stuff, but honestly as long as you find a killing product you can stick with that and create a proper brand. I started dropshipping recently as well and the best advice ive gotten is there is no such thing as saturation. As long as you are doing something new, different or better have no doubt it'll work, I know it gets overwhelming with so much new stuff but just dont give up easily and you,ll see results. Hope this helped a bit 👍🏼

@@lol-p7m i just very bad at marketing also idk how to get good views and also because tiktok u need certain things to have clickable link, i do wanna make so much money from it at one point but idk when exactly, i have a bit of health issues i wanan try get better or change it a little bit also and get a part time job, this would help me then maybe register business or other stuff and yh thx g love

Hey @GodIsFirstEdits! Congrats on starting your dropshipping business. It sounds like you’re diving into a lot of new stuff, which can be both exciting and overwhelming. Regarding the ABN (Australian Business Number), yes, it’s free to apply for one, and having an ABN is mandatory when doing business in Australia. Hope that helps. All the best on your dropshipping journey!

Hello! In the US, there’s no national VAT (Value Added Tax). Instead, each state has its own sales tax system. If your online store is based in China or Hong Kong and you sell to US customers, you need to be aware of "economic nexus" laws. This means if your sales to a particular state exceed a certain amount, you have to register, collect, and pay sales tax for that state, even if you don’t have a physical presence there. For the EU, things are a bit more standardised with VAT. If your online store is in China or Hong Kong and you sell to EU customers, you need to charge VAT at the rate of the customer’s country. For goods valued at €150 or less, you can use the Import One Stop Shop (IOSS), which makes it easier by letting you handle VAT through one EU member state. For items over €150, regular import VAT rules apply. Also, if your total sales to the EU are over €10,000 a year, you need to register for VAT in the EU and can use the One Stop Shop (OSS) to manage VAT across different EU countries. Hope this helps clear things up!

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!

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!😊

If you're selling to Australia from Canada, you need to register for and charge Australian GST once your sales reach A$75,000 per year, even if you're located in Canada. You must charge the 10% Australian GST on all sales to Australian consumers, whether for digital products or physical goods shipped there. Hope that clarifies the situation! You can learn more on the ATO website: www.ato.gov.au/businesses-and-organisations/international-tax-for-business/non-resident-businesses-and-gst

+1

Great question, @grgrochak! Generally speaking, when using a third-party logistics provider (3PL) in the EU, you become a deemed supplier. This means, for VAT purposes, you're considered to have both received and supplied the goods yourself. If the value of the goods per consignment doesn't exceed €150, you can opt to register in the Import One Stop Shop (IOSS). This allows you to handle VAT across all 27 EU Member States with just one registration. However, if a single consignment exceeds EUR 150, IOSS isn't applicable, and you'll need to explore other VAT compliance options. If you decide to use the IOSS, you'll need to appoint an intermediary who will handle your registration in the Member State where they are established. At the point of sale, you should charge the VAT rate applicable to the goods in the destination Member State. In your case, the specifics of how you work with your 3PL in the EU could significantly affect your VAT obligations. For instance, it matters whether you send goods from the UK to the 3PL or if the goods are purchased within the EU and then transferred to the 3PL. This detail can affect whether you need to charge VAT and how much. Since VAT regulations can be complex and vary based on specific business arrangements, I highly recommend consulting with a certified tax consultant to ensure you're fully compliant with the laws applicable to your situation. They can provide tailored advice suited to your business model.

@@Sufio thanks for your detailed answer. the goods would be sent from Uk to the 3pl. Would I have to charge vat for that?

Hi there! Although we don't have a video tax guide on this topic, we do have a detailed article about Polish taxes on our Sufio website that might be helpful. You can check it out here: sufio.com/articles/shopify/taxes/vat-eu-shopify/eu-taxes/polish-taxes/

Did you ever find your answer? I'm in Alberta and wondering the same thing for my Shopify store. And for selling to other countries. It's too complicated!

@@kbee33 I’m pretty sure having shopify tax is enough. I set my currency for Canadian Dollars and for my home market I have tax information set up so any product in Canada is charged tax. Anything that’s abroad will have its on duty fees I thiiiink that’s how it works? So recently I shipped to Ireland. It wouldn’t make sense for someone from Ireland to pay tax on a product that isn’t used here - so I think those numbers are crunched into the Canada Post shipping cost price and if there is any VAT the customer will just have to pay it when the item reaches their destination. Don’t quote me on that but that’s how I’ve come to kinda understand it.

@@kbee33you just have to charge tax within Canada you don't need to charge International deliveries

@@ThaKid14 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?

Hello @jam4954, that certainly sounds like an unusual issue! Have you reached out to Shopify support yet? They would be best equipped to help diagnose and resolve this problem for you.

Hey @lukavidojevic3409! Given the complexity of taxation rules across different countries, it's a good idea to consult a tax expert who is experienced in international sales and EU VAT regulations. This can help ensure you comply with all applicable laws and understand your tax obligations in each country. We wish you all the best on your dropshipping venture!

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

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!

You're very welcome!

Thanks for the kind words about the video! I'm glad you found it informative, @skateboard1938. You’ve raised a great question about how GST applies before reaching the turnover threshold. You are correct that you need to register for GST once your business reaches or expects to reach a GST turnover of AUD 75,000. Until your turnover crosses that threshold, you're not required to register for GST, and consequently, you should not charge GST on your sales. This means, for a sale of $70, you wouldn’t add GST of $7 to the price, as you are not yet registered. However, it's important to differentiate between GST and corporate income tax. Not charging GST on your sales does not exempt you from potential income tax on your profits. Income tax obligations are separate and depend on the profitability of your business, not just on turnover. Hope that helps!

Did you find an answer? I am in the same situation.

Hey @brentcoburn919. It's important to clarify a few things to determine your sales tax obligations. The key factors include who invoices the customer and the location of your business in relation to your customers. Printify handling the shipping doesn’t automatically exempt you from sales tax responsibilities. In the US, you need to consider whether you have a 'nexus' in any state where you sell goods. A nexus is typically established through physical presence, economic activity, or both, and it obligates you to collect sales tax in that state. If you are buying products from suppliers to resell them, you might be eligible for a resale exemption, which allows you to purchase goods without paying sales tax. To do this, you’ll need to obtain a resale certificate valid in the states where you do business. Remember, these rules vary by jurisdiction, so it’s a good idea to consult with a tax professional to ensure compliance.

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!

Thanks for reaching out with your question. When it comes to setting up taxes for international sales via your print-on-demand service through Shopify and Printify, the details can indeed get complex. Here’s a simplified breakdown to help guide you: 1. Location of your business and customers: Knowing where your business is officially based and where your customers are located is crucial. Since you're operating from Pakistan and targeting international customers, different tax rules apply depending on each customer's country. 2. VAT and customs duties: Typically, VAT (Value Added Tax) is charged to the final customer in the country where the goods are consumed. As an international seller, you might need to register for VAT in each customer’s country if your sales exceed certain thresholds. Additionally, remember that customs duties may apply when shipping internationally, which can affect how much your customers need to pay upon receiving their goods. 3. Specific rules for different regions: 3.1. European Union (EU): You’d be considered a deemed supplier. For consignments under EUR 150, you could opt to register for the Import One Stop Shop (IOSS) to simplify VAT payments. However, if a consignment exceeds EUR 150, the IOSS cannot be used, and VAT and customs duties will typically be the responsibility of the customer unless you arrange to pay these on their behalf. 3.2. United States (US): Sales tax requirements vary by state. You only need to collect sales tax in states where you have a nexus, which can be a physical presence or a sales threshold that you surpass. Given the complexity and the potential financial implications, I strongly recommend consulting with a tax professional who can provide specific guidance based on the full scope of your business operations. This will ensure compliance and help you understand all applicable tax obligations fully.

My Shopify store is mainly children's clothing and shoes along with other children's products based in Ontario Canada. The PST portion is not taxed on these items. I have added tax overrides for each collection andwhen I add children's clothing to checkout the override is not working. How to correct? Or, how to contact Shopify to report the error? I need a real person to speak with.

Das ist richtig. Die deutsche Version unseres EU-Steuerleitfadens ist nicht aktuell, und wir arbeiten an einer neuen Version. Wenn Englisch für Sie kein Problem ist, können Sie in der Zwischenzeit einen Blick auf unseren englischen EU-Steuerleitfaden werfen: kzbin.info/www/bejne/jIC7dXmLoJerrLs

Hey, @Psyamori. Establishing a company in Canada with the intent to ship products to a US-based third-party logistics provider (3PL) for distribution to US customers involves specific tax considerations: 1. GST/HST: When you export goods from Canada to another country, such as the United States, Canadian GST/HST generally does not apply to these exported goods. 2. Customs and import Taxes: On entering the United States, customs duties or import taxes may apply unless the goods are specifically duty-free under trade agreements or specific exemptions. 3. US sales tax: The United States does not use a taxation system like Canada. Instead, it employs a sales tax system that is managed at the state level. Depending on the specifics of your operations and the state laws where your 3PL is located, you may need to register to collect and remit sales tax if you meet the nexus criteria in that state. I'd suggest consulting with a tax professional experienced in cross-border commerce, who can provide valuable guidance and ensure compliance with all applicable tax laws.

Absolutely! You can use the One-Stop Shop (OSS) Non-Union scheme if you're not based in the EU. This scheme allows any taxable person without a business establishment or fixed presence in the EU to register in any Member State of their choice for VAT purposes. The VAT identification number you receive will be specifically for declaring transactions covered by the Non-Union OSS scheme, which also makes handling VAT across multiple EU countries much simpler. Hope that helps!

Hello there! Thank you for your comment. When operating a UK-registered company that sells digital products such as planners, stickers, and fonts, VAT considerations do differ based on customer location. For business-to-business (B2B) sales within the EU, these services are generally considered outside the scope of UK VAT, as the place of supply is the customer’s location in the EU. Therefore, no UK VAT is charged on such transactions. However, for sales to EU consumers (B2C), UK VAT rules will apply until you reach the VAT threshold. Once you surpass this threshold, you will be required to either register for VAT in each EU member state where you have customers or use the VAT One Stop Shop (OSS) scheme to handle VAT across the EU. This allows you to register for VAT in just one EU member state, simplifying the process. Regarding sales outside the EU, including the USA, UK VAT is not generally charged. Instead, you should consider the local tax rules of the countries where your customers are based. As you are considering this business structure, consulting with a tax advisor would be beneficial to ensure compliance and optimize your tax strategy. They can provide specific guidance based on the most current regulations.

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)

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.

Hello! Thank you for sharing your situation in detail. In your case, both the location from which the products are sent and the markets where they are sold are important. Since you operate under a UK company and focus on the UK market, and use UK fulfillment services, you should generally account for VAT as per UK regulations. However, because you also ship from Poland and Turkey to various regions, you need to consider the VAT rules applicable in those countries as well, especially for sales to other EU countries and beyond. Given that you haven't surpassed the VAT thresholds for distance selling in the EU or for the UK, you may not be required to register for VAT immediately. However, registering voluntarily could allow you to reclaim VAT on business expenses. It's crucial to get tailored advice based on your specific business model. We recommend consulting a certified tax advisor who can provide guidance based on the latest tax regulations in both your target markets and the countries you ship from. This will ensure you remain compliant and optimize your tax obligations. Hope that helps!