Taxation

[Lisa85]

Do our EU customers need to pay taxes if our goods (books) are non-taxable in UK? Why would they, they are buying them from our UK store?

 

[japancool]

It depends on the rate of taxation on books in the recepient country. Some EU countries charge 0% VAT, others charge more.

 

[DontAsk]

Do our EU customers need to pay taxes if our goods (books) are non-taxable in UK? Why would they, they are buying them from our UK store?

No different to any other goods. If export to them without adding VAT then, on import, they will pay whatever VAT and/or duty is due in their country.

 

[TeemuEAS]

Exactly as previous DontAsk and Japancool wrote. VAT in distance sales to EU customer is levied with VAT of the country of consumption, not the country of sale.

Sounds like you have a Shopify store as you are talking about non-taxable goods? Books are in fact NOT non-taxable in UK, they have a reduced VAT rate which is currently 0%. I know splitting hairs, but it does affect reporting and even more so the Shopify settings.

Making Shopify handle the issue is not entirely simple. If you want to make your life easy, just get in touch with us at EAS Project. We configure stores of authors and publishers daily for sales to EU, which means you will be able to also collect the VATs correctly while we handle the reporting and payment on your behalf. Could not be simpler!

 

[japancool]

Sounds like you have a Shopify store as you are talking about non-taxable goods?

Not sure why selling books would imply a Shopify store. Any e-commerce system can handle non-taxable goods.

 

[TeemuEAS]

Not sure why selling books would imply a Shopify store. Any e-commerce system can handle non-taxable goods.

Absolutely correct! That is just a terms which arises often with Shopify sellers, there are other ways to handle 0%. Non-taxable makes taxation impossible everywhere, also selling cross-border.

 

[Lisa85]

Exactly as previous DontAsk and Japancool wrote. VAT in distance sales to EU customer is levied with VAT of the country of consumption, not the country of sale.

Sounds like you have a Shopify store as you are talking about non-taxable goods? Books are in fact NOT non-taxable in UK, they have a reduced VAT rate which is currently 0%. I know splitting hairs, but it does affect reporting and even more so the Shopify settings.

Making Shopify handle the issue is not entirely simple. If you want to make your life easy, just get in touch with us at EAS Project. We configure stores of authors and publishers daily for sales to EU, which means you will be able to also collect the VATs correctly while we handle the reporting and payment on your behalf. Could not be simpler!

Exactly as previous DontAsk and Japancool wrote. VAT in distance sales to EU customer is levied with VAT of the country of consumption, not the country of sale.

Sounds like you have a Shopify store as you are talking about non-taxable goods? Books are in fact NOT non-taxable in UK, they have a reduced VAT rate which is currently 0%. I know splitting hairs, but it does affect reporting and even more so the Shopify settings.

Making Shopify handle the issue is not entirely simple. If you want to make your life easy, just get in touch with us at EAS Project. We configure stores of authors and publishers daily for sales to EU, which means you will be able to also collect the VATs correctly while we handle the reporting and payment on your behalf. Could not be simpler!

PM