Do We Have To Set Up Vat Rates In Shopify?

Bump.

If you are selling FAA prints through your Shopify store, did you set up VAT for European Union and UK?

There's a discussion going on about the same thing for Etsy. We will have to transmit an electronic number to the carrier and as of yet we have not heard how we can do that here for Etsy sales. Regardless, I believe it will be the responsibility of the shipper to do this. I'm not exactly positive how Shopify works, but I imagine FAA collects the payment? If that's the case, I can't tell you how it will be collected by FAA on Shopify but I imagine we'll hear soon.

Hello

Thanks for reaching out about your tax concerns. We're just your printing / drop ship fulfillment partner. The onus to collect sales tax is on you as the merchant where your customers are transacting.

Essentially, we're selling to you and you're re-selling to the end customer. You charge the end customer tax, and we only charge you tax in the states where we have nexus, Illinois and California. But because you're a reseller using our Shopify app, if our system does charge you tax on any of the orders you place through us, just let me know and we'll refund that tax amount charged back to you.

Unfortunately I cannot help with tax queries


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Abbie Shores
Community Mgr, Technical Support Mgr, Communications Mgr, Fine Art America | Pixels.com

Thanks Abbie,

My thinking regarding VAT in the UK and EU is that if FAA is charging VAT, then Shopify merchants who use FAA should charge VAT. It's not hard to set up VAT in Shopify, but we would have to know the rates FAA is charging. Is there any page we could look up and see how much VAT FAA is charging for orders shipped to UK and EU?

Is there any progress on the IOSS code thingy Abbie?

Unfortunately I cannot help with tax queries

I have told you Pixels' statement on taxes. You need to check tax percentages in the area you will be selling in

I have no idea yet about the Etsy issue. That is completely different to this

The problem is that FAA is producing and shipping out products, and FAA has printing centers in the UK and The Netherlands, if I'm not wrong. So, FAA should be charging VAT to EU and UK customers. Is there anybody in FAA who can tell us what VAT rates FAA is charging so we could replicate the same rates in our shops?
Alternatively, I might stop shipping outside of the US, at least until I figure out how to do it properly. It's not like I'm going to lose millions in profit if I don't ship to the UK or EU, lol.

Yeah, I realize that now that I have a better understanding of how Shopify works. I just figured I'd ask since there really isn't a thread dedicated to it and I figured you'd be poking your head in here again.

DA, I'd try contacting customer service, mebbe they can tell you.

That is the correct answer for our Shopify members. Sending to customer support will come straight back to me! I deal with all Shopify members.

We do not deal with your tax and you have to do that from your end.

We cannot help you with the taxes.

Ok, maybe I should ask differently since I am not looking for tax advice:
In which countries of Europe does the FAA have a presence and does the FAA charge any VAT to EU and UK customers when they order directly from the FAA website?
This is essential for us to set up VAT correctly, and it's not tax advice. It's a purely factual question. Without this information, Shopify users who use FAA have no chance of setting up VAT correctly.

Essentially, we're selling to you and you're re-selling to the end customer. You charge the end customer tax, and we only charge you tax in the states where we have nexus, Illinois and California. But because you're a reseller using our Shopify app, if our system does charge you tax on any of the orders you place through us, just let me know and we'll refund that tax amount charged back to you.

Ok, thanks again.
The whole thing is a bit confusing because FAA has a printing office in the UK, and the law about VAT says that if a business has any presence in the UK, including just a warehouse or a production facility, they have to charge VAT. Therefore, I expected that FAA would charge VAT when they sell to UK customers.
I think I am just going to turn off shipping to the UK and EU until I'm sure of what I'm doing. Basically, my business has no presence in the UK, but my products originate from the UK, and it looks like I should be charging VAT if I have more than a certain amount of sales. But I better ask some tax advisor about it.

Hi Ivan. Yes, I'm doing the same thing, unfortunately. All of this doesn't even take into account the new packaging laws. We would assume the printers have purchased those licenses in the growing number of countries demanding them. The onus, however, is on the seller, not the shipper. At least that is my understanding. It has all quickly outstripped my ability to understand, let alone comply. I don't think the lawmakers even understand how it will work for dropshippers. It is such a shame to have those printing facilities over there and not be able to use them. It's a heartbreaker, but I'm just not going to keep spending my precious time on what seems to be incomprehensible to me. Shipping original paintings is another whole subject that I won't even get into now. So I'm US only for the foreseeable future, both for originals and prints.