More accurate UK VAT based on fulfillment location
By Steven Van ·
Orders over £135 routed to a non-UK location are now treated as imports with no VAT at checkout, even if the store also has a UK location.
VAT on orders shipping to Great Britain is now calculated from the fulfillment location chosen by your order routing settings for each order. Shopify already works this way for tax on orders shipping to the United States, and the changelog entry describes the UK change as an improvement in the admin.
When VAT is not charged at checkout
If an order totals more than £135 GBP before tax and shipping and is routed to a location outside the UK, it is treated as an import, so VAT isn't charged at checkout. This applies even if the store also has a UK location.
What is not affected
- Orders of £135 GBP or less
- Orders shipping to Northern Ireland
- Existing orders
Charging VAT on these orders
There are two options. Update your order routing so these orders are assigned to a UK location, or collect duties and import taxes at checkout. Shopify points to its Help Center for more on charging VAT on orders over £135.
