Dr_K001

Thanks for your reply. So if I follow correctly, you are saying that I do not need to register for or collect VAT?

I hope this message finds you well. I am in the process of setting up an online (dropshipping) business as a Sole Trader in the UK. To provide context for my question, here's a brief overview of my business setup: 1. Business Structure: Sole Trader 2. Annual Turnover: Projected to be below the £85,000.00 VAT threshold. 3. E-commerce Platform: Utilizing Shopify for the online store 4. Fulfillment Service: Using Zendrop for order fulfillment My query pertains to the requirement to collect VAT given my business structure and relationships with Shopify and Zendrop. Specifically, as my projected annual turnover is below the £85,000.00 threshold, am I obligated to collect VAT on sales? Additionally, how does my association with Shopify and Zendrop impact my VAT obligations, if any? I appreciate your guidance on this matter and any clarification you can provide. Thank you. PS: For clarity, here is some additional information. Zendrop's Role: Zendrop is a third-party order fulfillment service that enhances the efficiency of my business by managing order processing and shipping logistics. Here's an overview of how it works: 1. Order Processing: When a customer places an order on my Shopify website, I order the product for them via Zendrop. I do not hold inventory. 2. Product Sourcing: Located in Austin, Texas, United States, Zendrop serves as the intermediary responsible for sourcing the ordered products. 3. Shipping to Customer (DDP): Zendrop takes charge of the packaging and shipping process, ensuring that the product reaches the customer's doorstep. Notably, they operate on a Delivery Duty Paid (DDP) basis, managing duties, taxes, and shipping fees associated with international deliveries. 4. Tracking and Reporting: Zendrop typically provides comprehensive tracking information and regular order status updates, enabling both me and my customers to monitor the shipment's progress.