Starting Jan 1st, 2021, there will be changes to the UK customs policies pertaining to duty and tax thresholds, VAT registration, and additional changes due to Britain leaving the EU.
Online merchants must register for VAT in order to collect tax on orders under 135GBP. It is no longer the receiver's obligation to pay VAT upon arrival anymore, and it is up to the shipper to charge VAT upon the sale.
Standard payments for VAT is quarterly, and merchants can register and send their VAT returns by visiting the below links:
From January 1st, 2021 an EORI (Economic Operators Registration and Identification) number will be required in order to move goods into the UK. Merchants can apply for an EORI number in 10 minutes here: Get an EORI number
If you do not have an EORI, additional costs and delays are possible and if HM Revenue and Customs (HMRC) cannot clear the goods, you may have to pay storage fees and bear return costs.
Easyship will update commercial invoice generation accordingly and will brief merchants on the new features in the new year.
Add your EORI to Easyship
In the Account > Company section of your dashboard, you will need to enter the EORI number so that Easyship can generate shipping documents with all necessary information to avoid issues at customs.
Setting up your Shopify store to apply VAT
First of all, merchants must be registered with all details listed above. From there you can start by creating a new Shipping Zone for the UK, as this will be needed to charge VAT.
- In the Settings section of Shopify, navigate to Shipping and Delivery. From there, click Manage Rates. Scroll past your products and click Create Shipping Zone.
- From there, proceed to set up your UK shipping zone, adding Easyship as your rate.
- Once your rate is added to your shipping zone, go back to Settings and click Taxes.
- As your UK shipping zone is set up, the UK will be an available tax region. Proceed to click Set Up.
- Then, under the VAT collection section, click Collect VAT. You will then be prompted to enter your VAT number (more information on setting that up above).
If you have any questions about setting this up on Shopify, please reach out to Shopify support. For Easyship related inquires, contact firstname.lastname@example.org.