Managed Markets for the United Kingdom

Managed Markets is available for stores based in the United Kingdom. International customers can check out in their local currency, duties and taxes are calculated at checkout, and orders are delivered with prepaid duties. Before you activate Managed Markets, review the requirements and considerations for using Managed Markets.

Considerations for using Managed Markets in the United Kingdom

The following features aren't yet available for Managed Markets in the United Kingdom:

• Shopify Protect.
• Multi-currency payouts.
• Refunds for Managed Markets orders.

Shipping carriers and fulfillment for Managed Markets in the United Kingdom

You can purchase DHL Express and FedEx shipping labels for Managed Markets orders in the United Kingdom. DHL eCommerce and UPS aren't available. Shipping rates use pre-configured rates that are set up when you activate Managed Markets.

If your store is in the United Kingdom and you have multiple fulfillment locations, then all locations must be either in Great Britain or in Northern Ireland. Stores with fulfillment locations in both Great Britain and Northern Ireland aren't eligible for Managed Markets.

Shipping labels purchased through Managed Markets in the United Kingdom are zero-rated. You aren't charged tax on the cost of your Managed Markets shipping labels.

For more information, refer to Fulfilling and managing Managed Markets orders.

Payouts and fees for Managed Markets in the United Kingdom

When you use Managed Markets in the United Kingdom, review the following information about payouts, fees, and invoices.

Settlement currency

Stores in the United Kingdom are paid out in GBP.

Fees

Managed Markets has the following fees for international orders:

• A Shopify Payments processing fee, which varies by your Shopify plan and the payment method used by your customer.
• A Managed Markets transaction fee of 3.25% for stores on the Shopify Plus plan, or 3.5% for stores on the Basic, Grow, or Advanced plan.
• A currency conversion fee that's the same as the foreign exchange (FX) fee for Shopify Payments in your region.

VAT is added to the Managed Markets fee for stores based in the United Kingdom. Refer to tax on the Managed Markets fee.

For more information, refer to Managed Markets with Shopify Payments.

Merchant of record fee invoices

When you activate Managed Markets, Global-e becomes your merchant of record for international Managed Markets orders. In the United Kingdom, you're charged a merchant of record service fee directly. Your Shopify Payments processing fee and FX fee remain on your Shopify Payments tax invoice.

Managed Markets tax invoices for the United Kingdom

A Managed Markets order in the United Kingdom is considered a business-to-business (B2B) sale from your store to Global-e, who then sells to your customer as the merchant of record. As a result, Managed Markets sales in the United Kingdom have tax implications. In the United Kingdom, VAT applies to orders.

You can download the following invoice types from the order page in your Shopify admin:

• B2B domestic tax invoice: Records the tax charged on the sale from your store to Global-e.
• Shipping fee invoice: Records the cost of the shipping label for the order.
• Merchant fee invoice: Records the Managed Markets transaction fee for the order.

Tax invoices are generated when a Managed Markets order is fulfilled, not when the order is placed. The download option is displayed only after the invoice exists. If the download option isn't available after an order is placed, then check the order again after it's fulfilled.

To download tax invoices for multiple orders at the same time, use the bulk download option in your Managed Markets settings.

Self-billing agreement for Managed Markets in the United Kingdom

If your store is based in the United Kingdom, then you need to sign a self-billing agreement when you activate Managed Markets. A self-billing agreement is required for tax compliance.

Tax ID validation

In the United Kingdom, your VAT tax ID and business name are validated. Your VAT registration must be valid and match your registered legal business name. If your VAT registration is invalid or doesn't match your legal business name, then you might be liable for 20% VAT due on your Managed Markets sales. This can be a significant, unexpected cost.

Tax reports

You can view an overview of the taxes you've collected through Managed Markets from the Managed Markets taxes report in your Shopify admin. For details about the data displayed and how to customize the view, refer to Managed Markets taxes report.