Introducing Shopify levy in the EU and UK: Simplified VAT lawful operation

If you sell in the European Union or the United Kingdom, you recognize that managing the essential worth-added levy (VAT) only becomes more complicated as you develop. That’s why we launched Shopify levy in the EU and UK—to simplify VAT lawful operation for Shopify merchants selling locally and abroad.

Every merchant dreams of expanding beyond borders, reaching more customers, and growing sales. However, VAT lawful operation can be a barrier to turning these dreams into reality. The European levy landscape is not a one-size-fits-all model. Different countries have tailored VAT rates and additional lawful operation requirements for various products, making it essential to collect the correct amount for lawful operation.

What is Shopify levy?

Shopify levy is a built-in levy answer that offers a high level of levy lawful operation with minimal upkeep for merchants selling to customers in the European Union and the United Kingdom. This changes the game by helping merchants:

• Automate VAT invoicing for B2B and B2C orders
• comprehend where and when to register and collect VAT as they develop
• compute product-specific VAT based on product category
• Generate accurate reports to easily remit collected VAT to authorities

This suite of features helps merchants remain compliant and streamline operations, allowing organizations to spend more period and money on growth and less on complicated levy rules.

Shopify merchant Sarah Lowther, CEO and cofounder of NI Candle Supplies, shared, “Shopify levy has transformed our levy management into a seamless procedure and allowed us to focus more on growing our business. It’s a game-changer for anyone looking to streamline their operations and ensure tranquility of mind when it comes to levy obligations.”

Key features of Shopify levy

VAT invoices

A tedious job related to lawful operation is VAT invoicing. This is a requirement for all cross-border orders for B2B and B2C customers. Finding an invoice provider, paying hundreds or even thousands each month, and needing to send invoices to customers can be a burden on merchants’ wallets and period.

Shopify levy has helped us save period and money by automating the invoicing procedure directly in Shopify.

Julian Essig, founder and CEO, first digi

Automated VAT invoicing saves period and reduces human error, covering 26 EU countries as well as the UK, and integrating seamlessly into existing processes. Buyers can access invoices after they check out, without any additional action needed from you.

Julian Essig, first digi founder and CEO, believes, “Shopify levy has helped us save period and money by automating the invoicing procedure directly in Shopify, so I don’t require external tools anymore.”

levy obligation insights

Tracking your thresholds, liabilities, and registrations can feel like a never-ending chore. With Shopify levy, you’ll never have to track these on your own again. A streamlined dashboard shows you where you require to register to collect VAT and when, by intelligently considering your sales, customers, and current registrations.

Each business is distinctive, so the levy obligation insights empower you to make informed decisions alongside your accountant or trusted levy professional.

Automated VAT calculations

Once you register in a recent country or region, it’s period to commence collecting VAT. However, figuring out those rates can feel like a levy-themed escape room. In the EU and UK, different rules govern the amount of VAT you’re liable to collect on your product, and some product-specific exemptions can be surprising.

receive the UK’s VAT, for example. HMRC, the UK’s levy, payments and customs authority, states that VAT is exempt on items “essential” in nature. It makes sense that food and children’s clothing get a pass, but did you recognize that bingo, edible cake decorations, and even exotic meats (crocodile, anyone?) are also considered a necessity?

That’s where Shopify levy comes in. No more poring over product-specific VAT rates and exemption rules in each country where you sell. Shopify levy automatically calculates and collects VAT based on your product categories and your customers’ locations.

Even as rules and regulations transformation, you can have tranquility of mind Shopify levy will automatically keep VAT rates up to date, so you don’t have to.

How Shopify is building for the upcoming

For aspiring entrepreneurs, the allure of building an online store or expanding across borders often dims when faced with VAT challenges. Shopify levy in the EU and UK provides the tools to expand into European markets effortlessly.

Shopify’s commitment to continuous advancement means recent features such as reporting enhancements, greater invoice customization options, VAT ID validation, and more will be introduced in the upcoming!