Learn More About VAT and Sales Tax Policies (Shopify)
Plans: Pro, Enterprise Platforms: Shopify
The tax charged in the UK is named VAT, whereas the tax charged in the US is regarded as Sales Tax.
Value Added Tax (VAT)/ Sales Tax policies are not one-size-fits-all; they vary across countries and regions. As a result, users often have distinct preferences on how VAT is presented in their order details. For example, the US merchants prefer to show item prices with tax excluded and not to display tax, whereas the UK merchants prefer to show item prices with tax included and display tax.
Based on the tax preferences across countries, AfterShip Feed supports two distinct settings for Shopify users in the US and UK that allow them to configure their sales tax/VAT display settings based on their regional preferences.
In this tutorial, we will discuss:
How VAT is displayed on Shopify UK
How VAT is displayed on Shopify US
By default, the VAT is included in the order price and is not displayed in the price breakdown.
To modify your VAT display settings, go to Settings > Order sync > VAT display in Shopify orders. Select one of the available options
Include VAT in subtotal and shipping
Display VAT on a separate line: By default, we will charge 20% VAT on products and 20% VAT on shipping. You can set the VAT rate if it’s more or less than what you’re being charged. The VAT will be included in the order price and will be displayed in a separate line in the price breakdown.
By default, the Sales Tax is included in the order price and is displayed separately in the price breakdown.
To modify your sales tax display settings, go to Settings > Order sync > Sales tax display in Shopify orders. Select one of the available options
Include sales tax in order total
Do not include sales tax in order total: The sales tax will be included in the order price and will not be displayed in a separate line in the price breakdown.
Learn More About VAT and Sales Tax Policies (BigCommerce and WooCommerce)
Overview
The tax charged in the UK is named VAT, whereas the tax charged in the US is regarded as Sales Tax.
Value Added Tax (VAT)/ Sales Tax policies are not one-size-fits-all; they vary across countries and regions. As a result, users often have distinct preferences on how VAT is presented in their order details. For example, the US merchants prefer to show item prices with tax excluded and not to display tax, whereas the UK merchants prefer to show item prices with tax included and display tax.
Based on the tax preferences across countries, AfterShip Feed supports two distinct settings for Shopify users in the US and UK that allow them to configure their sales tax/VAT display settings based on their regional preferences.
What you'll learn
In this tutorial, we will discuss:
How VAT is displayed on Shopify UK
How VAT is displayed on Shopify US
Shopify UK
A. Default VAT display setting
By default, the VAT is included in the order price and is not displayed in the price breakdown.
Set up VAT display settings in AfterShip Feed admin
To modify your VAT display settings, go to Settings > Order sync > VAT display in Shopify orders. Select one of the available options
Include VAT in subtotal and shipping
Display VAT on a separate line: By default, we will charge 20% VAT on products and 20% VAT on shipping. You can set the VAT rate if it’s more or less than what you’re being charged. The VAT will be included in the order price and will be displayed in a separate line in the price breakdown.
B. VAT display after order sync settings
Shopify US
A. Default sales tax display setting
By default, the Sales Tax is included in the order price and is displayed separately in the price breakdown.
Set up sales tax display settings in AfterShip Feed admin
To modify your sales tax display settings, go to Settings > Order sync > Sales tax display in Shopify orders. Select one of the available options
Include sales tax in order total
Do not include sales tax in order total: The sales tax will be included in the order price and will not be displayed in a separate line in the price breakdown.
B. Sales tax display after order sync settings
Additional resource
Learn More About VAT and Sales Tax Policies (BigCommerce and WooCommerce)
Updated on: 24/11/2023
Thank you!