Setting up UK taxes
If you're new to Shopify, then before you start selling, you need to determine whether you should charge tax. You might need to register with various VAT member countries. After that, you can set up your taxes in Shopify to help ensure that you charge the correct rates wherever you sell.
Before you begin setting up UK taxes in Shopify
You need to determine whether you should charge taxes. If you're not sure, then consult with local tax authorities or a tax professional. Typically, you need to register for VAT if you're located in the United Kingdom and your sales to UK customers are equal to or greater than £90,000 GBP within a 12-month period.
If you intend to sell to countries in the EU, then you might need to register with tax authorities in those regions as a result of Brexit. The process varies depending on where your business is based and where you sell, and on individual government requirements. It's your responsibility to determine where you need to register to charge VAT.
Set up UK VAT collection
For step-by-step instructions on setting up UK VAT collection, including VAT number format, threshold rules, and testing your settings, refer to Tax registration for UK merchants.
After you set up your tax regions, you can create tax overrides for products where the default tax rates don't apply.
Next steps
- Test your tax settings using draft orders
- Manage your UK taxes including overrides and exemptions
- Track your UK tax liability to determine registration requirements