Update: Shopify duties + import taxes
As of 2nd February 2025, Shopify has made Duties & Import Taxes available to all merchants, regardless of their Shopify plan. Previously, this feature was exclusive to Advanced Shopify and Shopify Plus users.
What Is Shopify Duties & Import Taxes?
This feature allows merchants to display and collect duties and import taxes at checkout, ensuring customers see the full cost of their purchase upfront. By providing clear cost information, you can enhance transparency and reduce unexpected fees upon delivery.
Important Considerations
If you’re collecting estimated duties and import taxes at checkout, Shopify recommends pairing this service with duty prepaid (DDP) labels. This helps prevent customers from being double-charged and reduces the likelihood of rejected parcels. Please note: duty prepaid labels must be purchased outside of Shopify Shipping.
Learn more about collecting estimated import taxes and duties in the Shopify Help Center.
Pricing Update
To make this feature more accessible, Shopify has temporarily reduced pricing. A 0.5% transaction fee now applies to orders with duties and import taxes calculated at checkout.
Exceptions: Transaction fees are not charged for:
- Orders shipped within the same country or region as the store’s location.
- Orders between EU member countries.
- Abandoned checkouts.
Managing Duties & Import Taxes on Shopify
Shopify offers several tools to help merchants handle international duties seamlessly:
1. Use the Duty Calculator
Enable Shopify’s built-in duty calculator via Settings > Taxes and Duties in your Shopify admin. This tool automatically calculates duties and taxes at checkout, ensuring customers aren’t surprised by hidden costs. Be sure to pair this with duty prepaid labels for shipping.
2. Purchase Prepaid Duty Labels
Use third-party apps from the Shopify App Store to buy duty prepaid shipping labels. This prevents unexpected customs charges and ensures smooth delivery for your international customers.
3. Managed Markets (For US-Based Merchants)
Eligible US merchants can use Managed Markets to automate duty calculations and payments at checkout. This feature includes prepaid duty labels at negotiated rates and guarantees accurate duty and tax calculations.
4. Customise Store Messaging
Enhance customer trust by displaying clear messages on your store about duties being prepaid at checkout for certain regions. This reassures international buyers that there will be no surprise fees upon delivery.
