When your shop is first created, Shopify sets up some default tax rates depending on where you're selling:
- Default tax rates for selling online are based on your shipping zones.
- Default tax rates for Shopify POS are based on your retail location.
You can set up your tax rates and choose how you want to charge taxes from the Taxes area in Shopify:
We do our best to keep the default tax rates up to date, but you should double-check to make sure that they are current and correct.
Shopify does not automatically set up applicable taxes for countries outside of your own. It is your responsibility to determine whether you need to charge tax on products being shipped to another country, and to manually set up a tax rate accordingly.
You are responsible for reporting sales taxes to your government and submitting any taxes you collect from your sales. You can include tax charges in your product prices and shipping charges if you want, or add them separately at checkout.
Grow your business
Sufio can help you set up your store to follow EU VAT regulations, including everything from capturing and validating your business customers' EU VAT registration numbers and setting them as tax exempt when applicable, to creating invoices that are fully compliant in Canada and the countries of the European Union. Sufio offers an exclusive plan for Shopify stores. Business customers with valid VAT numbers are not charged VAT during checkout.
If you're on the Shopify Standard plan or higher, we generate a tax report for you in the Taxes section of your Reports page. The report shows the taxes applied and amount collected for your taxable orders.