Shopify VAT, GST & Sales Tax Setup: Complete Developer Guide for UK, AU & US Stores

By Muhammad Tauqeer · Published 2026-10-12 · 9 min read

Quick Answer

Configuring Shopify taxes across the US, UK, and Australia requires setting tax-inclusive pricing for UK (20% VAT) and Australia (10% GST) while maintaining tax-exclusive pricing with automatic economic nexus calculation for the US. Front-end Liquid templates must display clear localized tax disclosures on collection grids and product pages.

Tax Principles: Inclusive vs. Exclusive Pricing

In the US, buyers expect prices without tax calculated at checkout. In the UK and Australia, displaying tax-exclusive prices on product grids violates consumer protection standards and triggers cart abandonment.

United Kingdom: 20% VAT & Making Tax Digital

Configure Shopify Taxes to check "Include tax in product prices" and enter your 9-digit UK VAT Registration Number.

Australia: 10% GST & Tax Invoice Requirements

Businesses with turnover exceeding $75,000 AUD must register for GST and display all prices inclusive of 10% GST with ABN-compliant tax invoices.

United States: Economic Nexus & Destination Tax

Enable Shopify Tax to automate rooftop-accurate tax calculations during checkout based on state economic nexus thresholds.

Frequently Asked Questions

Does Shopify automatically collect taxes for me?

No. Shopify calculates and collects taxes based on the tax registrations you manually configure in your admin settings.