Does Shopify need to pay VAT in the UK? How to declare VAT?

There are still many merchants opening stores on the Shopify platform. Because it is an independent station model, many things need to be handled by the merchants themselves when opening a store on it, including the issue of VAT tax. Many people ask whether Shopify UK needs to pay VAT?

Does Shopify need to pay VAT in the UK?

Shopify has to pay VAT in Europe, but it is not mandatory to pay taxes. It mainly depends on your sales volume. All cross-border sales to the UK with a sales price higher than 15 pounds are subject to "import VAT"; all sales in the UK are subject to "after-sales VAT". These two taxes will not be deducted repeatedly, and the import VAT paid by the seller can be applied for deduction when declaring after-sales VAT. For example, if you paid 20 pounds of import VAT with your VAT number when importing, you will need to pay 40 pounds of after-sales VAT after selling all the goods.

How to declare VAT?

1. Zero declaration: If the seller does not sell goods in the country that needs to declare during a declaration period, he can choose zero declaration. If there are deduction items on the platform, you can click [Add deduction items] and fill in the required content. If there are no deduction items, please ignore it.

2. Normal declaration: If the seller has sales in a country that needs to be declared during a declaration period, he/she should choose normal declaration. On the tax bill details page, the merchant can clearly see the tax details of each item he/she sells, and pull down the tax calculation window to select whether to declare taxes in the current country for the "portion within remote sales". After confirming that the total tax amount is correct, the system can submit the declaration data to the tax bureau system.

Please note that you cannot directly choose zero declaration after withholding. You still need to upload your sales normally. The system will help you calculate your payable taxes. If you have paid all the taxes, the system will identify and display your payment amount as 0 yuan. Don't worry. However, it should be noted that zero declaration is not the same as normal declaration and payment of 0 tax.

Whether you need to pay VAT fees on Shopify UK depends mainly on your sales. Not all merchants need to pay it. If your sales are very high, you will definitely need to pay it. In addition to VAT taxes, there are many other types of fees that merchants need to pay to the platform.

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