Shopify VAT, GST & Sales Tax Setup: Complete Developer Guide for UK, AU & US Stores
By Muhammad Tauqeer · Published 2026-10-12 · 9 min read
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.