It is a little bit complex but please remember that all you really have to do is 2 things.

Firstly, tell us where you reside of you are trading on your personal behalf or where your company is registered if you are trading a s a company, and if you are registered for sales tax (VAT) in that place of residence. 

Secondly, you must set up the sales tax (VAT) rates in your Shopify store. Here is an article on how to do this: https://sufio.com/articles/shopify/taxes/vat-eu-shopify/eu-taxes/ 

For a more detailed explanation, please read on!

In terms of when you sell a print in your Shopify store, whether you charge your customers Sales tax (VAT) really depends on where you are based, where the legal country of residence if for you (if you are a sole trader) or your business (if you are trading as a limited company or partnership). The country of residence will have its own rules on whether you need to charge sales tax (VAT) on your print sales.

If you are selling prints through your own store then you should collect and pay sales tax (VAT) if you are registered for sales tax (VAT) in your country of residence on print sales that incur sales tax (VAT) as per the rules of that country. If you are collecting sales tax (VAT) then periodically you must submit a correct return and payment to that country’s tax authorities. Whether you do pay sales tax (VAT) on a sale usually depends on which country the print you are selling is being delivered to. 

If you are based in the UK, for example, here are the rules that you should set up in your Shopify settings:

  • If you are not registered for sales tax (VAT) in the UK then you should not charge sales tax (VAT) on any print sales. 
  • If you are registered sales tax (VAT) in the UK then here are the rules:
  • If the print you sell is being delivered to the UK, you should charge UK sales tax (VAT) on the sale
  • If the print you sell is being delivered to the EU and is being bought by someone who provides you with a valid EU sales tax (VAT) number then you do not have to charge UK sales tax (VAT) on the sale
  • If the print you sell is being delivered to the EU and is being bought by someone who without a valid EU sales tax (VAT) number then you should charge UK sales tax (VAT) on the sale
  • If the print you sell is being delivered outside of the EU then you do not have to charge UK sales tax (VAT) on the sale

When we charge you for fulfilling your print orders, we will charge you sales tax (VAT) also as per those same rules above, as we are based in the UK. If you are selling a shared artwork, belonging to someone who submitted work to the art catalogue or directly shared with you, then we will charge sales tax (VAT) on their share based on the rules in their country of residence. If we do not know their country of residence (as they have not told us) then we will default to using UK sales tax (VAT) rules. 

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