Question

Hi .  why shopify charged so big taxes for my clients?Hi . why shopify charged so big taxes for my clients? it depend on country?  

Answer 1

"how to make taxes smaller - i want 5% or less" . if you did find the solution how to choose the tax however you like, please just let me know as well ;-)

Comments

It depends on country?  

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@stereotomy yes, depends on the country which you are shipping to, seems that it is 21% tax, it could be even more, as there are some countries with higher tax as well. however, if you deliver in a country you need to be sure also to have all regulations from that country in place, otherwise you could be sued for whatever is missing (talking about european countries, don´t know if this is valid for others as well) and as soon as you reach a specific amount of sales (some are quite low), you would need to have your tax declaration done in that country as well . just fyi

Answer 2

Hahahahaha i enjoyed this

Answer 3

Lol the fuck is going on here

Answer 4

I think it's because of the service they provide, they have to pay high taxes

Comments

Hm so they pay as well ? or i? or it depends on country?  

Answer 5

Only two things guaranteed in life. Death and taxes  

Answer 6

It is EU rule, i. e. the client with invoice address from Netherlands, needs pay 21%, 433, 88€, if from Germany, needs pay 19%. Some provider allow company client enter a valid VAT ID then make tax free.  

Answer 7

This is what we call VAT in the European Union. you don’t pay it but as you can see your customer paid for it, however companies have to convey it to the government

Comments

@facility well in this example the seller paid it because he didn’t add the VAT to the sales amount it seems.  

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@arman9860 well, i am pretty sure there is also in shopify the possibility to have prices with and without taxes . so, it should not be surprising at all for the seller . but, what i am talking about. just the basics ;-)

Answer 8

Italy is 22%  

Comments

@moberg7 Scandinavian countries it is 25% Portugal has 27% and if you ship clothes from outside the EU you can add 12% import duties.  

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@arman9860 That's crazy! How can people even profit without a 150% charge on price?  

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@moberg7 VAT is added after you or your supplier sets the price.  

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@arman9860 where did you get that 27% for portugal, it should be 23%

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@gossamer40 you seem to be correct. Not sure where I saw it but the number stuck in amazement as it was higher then what we pay (25%)

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@gossamer40 just checked it was Hungary actually

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@arman9860 did not know it, was just surprised about that number and checked it to see if that could be really be possible ;-)

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@arman9860 well, seems you are right with hungary, i am surprised about that.  

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@gossamer40 27 got stuck in my head just the wrong country  

Answer 9

I think you setup wrong fees on Shopify Taxes side.  

Answer 10

You are responsible for collecting VAT. Which country are you based in? And where did the client check out from? If the customer is from the same country as you, you have to declare the VAT (consult an accountant/tax adviser) and pay it. If not, you'll get in trouble. There are many other rules and laws governing taxes that YOU must collect and pay - you should go get proper advice.  

Comments

Many possibilities to get in big trouble if a question like this has to be asked at facebook ;-)

Answer 11

The owner of the Shopify store chooses to collect taxes from the buyer or not (in the product settings). Subsequently, Shopify takes into account your state and creates a tax that's included in the product price and is calculated at the checkout.  

Answer 12

It's not shopify. It's your client who choose to collect taxes.  

Answer 13

Bro which country billing Looking like real shit

Comments

@do95929 its real

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@stereotomy yeah I understood but what's billing country ?  

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@do95929 lithuania

Answer 14

If you have a valid VAT number, the transaction will be vat exempt

Answer 15

You don't need a VAT ID if you are earning less than 35k a year

Comments

@arman9860 Alysn Jidon Depends on the country