If you are selling to customers who are located outside of the United States, you may be required to collect and remit sales taxes. This guide explains how taxes are calculated in ReCharge for countries outside of the US. You can also refer to our setting up taxes article for a general overview of how tax settings work in ReCharge.
Syncing non-US taxes with ReCharge
Shopify provides merchants with the option to set manual tax rates at the country or region level for all countries outside of the US or Canada. Merchants collecting sales tax in Canada can do so at the provincial level within Shopify.
When you initially install ReCharge, we sync any non-US tax rates you have set up in Shopify automatically. However, If you modify your tax regions in Shopify, you will need to reach out to our support team to manually re-sync your tax settings that you have modified after installing ReCharge.
You can also refer to our article charging taxes in the US to set up state-specific tax rates.
Charging taxes in Canada
Shopify requires merchants collecting sales tax in Canada to provide a tax registration number to specify which provinces they are required to collect sales tax for.
You need to specify in your Shopify tax settings where you need to collect sales taxes in Canada by adding your tax registration number. ReCharge will then be able to determine the tax rates you charge in Canada and will use these rates to calculate the applicable taxes for Canadian customers.
If you've updated your tax rates for Canada after installing ReCharge, please contact our support team so we can re-sync the tax rates for you.
Charging taxes outside of the US or Canada
Collecting VAT
If you're selling outside of the US or Canada, you may need to collect Value Added Tax, more commonly known as VAT, from your customers. These tax amounts will show up in your Shopify reports.
VAT is a consumption tax applied to goods and services sold for use or consumption in the European Union. For more information on how VAT rates work, check out TaxJar's blog post explaining VAT rates.
Like US tax rates, VAT rates can be complex as they are a multi-stage tax that applies to each step of the supply chain. As such, we recommend working with a local tax professional to confirm that you are charging the correct VAT rate for each country.
Setting up your tax rates
ReCharge uses the rates that you've added for each country in Shopify to calculate the tax for each order processed in ReCharge.
You can follow Shopify's guide to taxes outside of the US and Canada to set up tax rates for additional countries.
When you install ReCharge, we will automatically sync your tax regions based on the shipping zones you've specified in Shopify. You will need to contact our support team if you make changes to these existing rates or add additional shipping zones in Shopify after installing ReCharge.
Updating and adding tax rates
Please contact our support team if you update or add additional tax rates in Shopify after installing ReCharge so that we can re-sync the tax rates.