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1ntik Member 1ntik.com
Posts:
7
Last edited 14 days ago

[TAXES]CA Based - Selling to EU Customers

Hello, I'm starting a POD business, everything's running smoothly except for TAXES, some general guidance would be much appreciated!

My store is Canadian Based (sole owner for now, no company) , and I'm supposed to sell to European customers. I work with Printful as a fulfillment company.

 

Let's assume I'm selling a T-Shirt

  • Retail Price 24.99€ Tax/Shipping Included
  • I Buy it from Printful for 12€+3€Shipping + 21% VAT = 18$

This leaves me with a ridiculous 5€ Margin, and since my prices includes tax, does that mean I still owe that 5€ to the EU?!!

I don't want to charge additional stuff at checkout(shipping and taxes: unattractive), but if I did, would that be canadian tax or EU tax?!

What about paying revenue taxes to Canadian government 🤣🤣🤣

 

It's really confusing and really discouraging to the point I'm almost willing to give up, I would really appreciate some help

I know only a professional can give me accurate information, but I'd be nice to at least have an idea from you guys.

Thank you, looking forward to your replies.

i
Replies
Nick Shopify Employee
Posts:
1124
13 days ago

Hi 1ntik,

Nick here from Shopify. 

Really great question. Taxes are difficult to figure out even on the best of days. 

The first thing I would suggest to anyone is as you said to speak to a professional accountant or your local tax office. I cannot stress this enough for the main reason of taxes are different for every country and even regionally different around the world. In saying that though Shopify does have a helpful guide with all things to do with non-US taxes which you can read here. The most important part I feel which needs to be figured out is whether you need to charge sales tax based on an origin basis or destination basis. This differs for every country and is the reason your best bet is to consult a professional about it directly. 

Some other helpful guides which I think might be of use to you is a guide from Printful on how to configure your VAT as well as a general tax set up guide from Shopify

I hope this helps and sheds some more light on this for you. Don't hesitate to ask should you have any other questions about this or anything else. 

All the best, Nick