Shopify now works out UK VAT for orders shipping to Great Britain from the fulfillment location your order routing settings choose. This is the same approach it already uses for orders shipping to the United States.
If an order is more than £135 before tax and shipping, and routing sends it to a location outside the UK, the order is treated as an import. VAT is then not charged at checkout. This applies even if your store also has a UK location.
Orders of £135 or less, orders shipping to Northern Ireland, and existing orders are not affected.
Why it matters
Orders over £135 routed to a location outside the UK are treated as imports, so VAT isn't charged at checkout.
What to do this week
- Check how your order routing assigns orders going to Great Britain.
- If you want VAT charged on these orders, assign them to a UK location.
- Or collect duties and import taxes at checkout instead.
- Read the Shopify Help Center article on charging VAT on orders over £135 before you change your settings.
Written with AI from the source above. If something looks off, the source is what counts.
