Did you know that Australian based eCommerce businesses now have to register for UK VAT from the first dollar they sell into the UK? Read more here.
This article shows your business how to set up Shopify for UK VAT.
Step 1: Add a new Shipping Zone called United Kingdom.
Step 2: This new zone will then show up in the Settings | Taxes area of Shopify as shown here:
Step 3: Click on Manage next to United Kingdom and tick the box that says ‘collect VAT’.
Step 4: If you sell products that are exempt from VAT, you will need to add a manual collection, and then add this collection to ‘add product override’. Remember that the VAT rules are different to our Australian GST rules, so just because we collect GST on something in Australia, does not mean that you need to collect VAT on that same product in the UK.