Update your tax settings by July 1, 2021, on Shopify Plus and Shopify

Last week thousands of Shopify Plus and Shopify merchants got a message with the title “Update your tax settings by July 1, 2021,” and you’re probably wondering what this means?

Shopify wrote a blog post about it, but I bet many merchants just ignored it because it’s pretty long.

We’re not tax professionals, but our understanding of these changes is that most merchants can continue to operate as-is and have the customer pay the duties on import. 

But now, Shopify has the option to collect and remit the tax on orders of €150 orders if you register with https://ec.europa.eu/taxation_customs/business/vat/ioss_en. 

At some point, if a merchant wants to pursue more international orders, there are great global solutions like https://www.global-e.com/ that we’ve implemented for some of our clients that take the heavy lifting out of processing and fulfilling international orders.

Let us know if you have any questions or would like to talk more about Shopify tax settings.

Also published on Medium.

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