Managing International Taxes in Shopify for Indian Merchants Selling Globally (UAE, Brazil & Zurich)

June 18, 2025

Introduction

Indian businessmen are no longer restricted to their country’s borders in the modern digital world. Sellers in India may access buyers in the UAE, Brazil, Zurich, and other countries by using eCommerce platforms like Shopify. Nonetheless, handling foreign taxes is an important but frequently disregarded factor.

We’ll walk you through setting up and maintaining global tax compliance in Shopify in this blog. This tutorial is designed especially for Indian sellers who are prepared to expand internationally, covering everything from comprehending region-specific regulations to optimising your store for global expansion.

Understanding the Importance of Tax Compliance in Global Selling

Why Global Tax Management Matters

When selling internationally, you’re not just shipping products overseas—you’re entering different tax jurisdictions. Each country has its own tax rules and digital product regulations.

Incorrect tax settings can lead to:

Penalties and fines from foreign tax authorities
Checkout issues for international customers
Inaccurate pricing and reduced conversion rates

By following a structured Shopify international tax setup, you ensure smooth cross-border operations, legal compliance, and a better shopping experience for your buyers.

Shopify International Tax Setup: The Basics for Indian Merchants

Getting Started with Shopify’s Tax Features

Shopify provides flexible tools to help you manage taxes in different countries. Start by enabling the “Calculate taxes automatically” option under your Shopify Admin > Settings > Taxes and duties section.

For Indian sellers:

Enable India GST under your domestic region
Then set up custom tax overrides for countries you are selling to (UAE, Brazil, Zurich)

Don’t forget to:

Use Shopifes Markets to manage international regions
Set accurate product prices inclusive or exclusive of taxes based on customer location

Shopify Tax Compliance in the UAE

Tax Rules and How to Configure Them in Shopify

The UAE has a 5% VAT (Value Added Tax) applicable on most goods and services. As an Indian merchant, if your store reaches UAE customers, you might need to register for VAT depending on sales volume.

Steps for UAE Shopify Tax Setup:

Add UAE under Shopify Markets
Create a tax override with 5% VAT
Update your invoices to include UAE VAT if required by your customers

Always consult a UAE tax advisor to determine if VAT registration is mandatory based on your supply chain.

Handling Brazil’s Complex Tax Structure in Shopify

A Closer Look at Brazil’s Tax System for Foreign Sellers

Brazil is known for its layered and complex tax system, which includes ICMS, IPI, PIS, and COFINS taxes. For Indian merchants, this means you need to work with a local fulfillment partner or tax consultant.

Tax Management Tips:

Shopify doesn’t calculate Brazil’s taxes automatically due to complexity
Use third-party Shopify tax apps like Quaderno or Avalara to manage taxes
Consider using manual tax overrides for Brazilian regions

Selling in Zurich (Switzerland): What Indian Merchants Need to Know

Swiss VAT and Digital Tax Rules

Switzerland applies a standard VAT of 8.1%. If your Shopify store sells digital or physical products to Swiss customers, VAT might apply depending on your revenue.

Shopify Tax Setup for Zurich:

Go to Shopify Admin > Taxes
Add Zurich/Switzerland as a region
Set VAT rate to 8.1%
Use tax-inclusive pricing for easier checkout

If you cross the revenue threshold (currently CHF 100,000 globally), Swiss VAT registration becomes mandatory.

Best Practices for Shopify India Global Selling

Tips for Indian Sellers Expanding Internationally

To scale globally while staying compliant, follow these best practices:

Use Shopify Markets Pro: Manage taxes, duties, and currencies seamlessly
Enable multi-currency support: Show prices in local currencies for UAE, Brazil, and Zurich
Automate tax documentation: Use tax apps to generate compliant invoices
Understand import/export laws: Especially important for physical goods
Regularly audit tax settings: Stay up-to-date with changing regulations

Final Thoughts

At first, handling foreign taxes in Shopify may seem overwhelming, but Indian retailers can easily traverse various tax systems with the correct resources and approach. A properly optimised Shopify foreign tax setup enables you to remain compliant and expand without anxiety, regardless of your target market—the UAE, Brazil, or Zurich.

Keep in mind that adhering to the regulations of the markets you service is more important for successful Shopify India worldwide selling than simply growing your audience. Properly set up your tax structure to enable seamless cross-border expansion of your company.

FAQ

Q1: Do I need to register for taxes in other countries if I sell from India?
A: Yes, depending on your revenue and the country’s threshold. For example, UAE requires VAT registration if you exceed AED 375,000 in annual revenue.

Q2: Can Shopify calculate taxes for Brazil automatically?
A: No. Brazil’s tax system is too complex for native Shopify tools. You’ll need third-party apps or manual overrides.

Q3: How do I invoice customers with international taxes included?
A: Use Shopify’s tax-inclusive pricing or connect a tax compliance app that auto-generates international invoices.

Q4: Is GST in India still applicable when selling globally?
A: Yes, but export transactions are often zero-rated. Consult your Indian CA for accurate GST handling.

intertoons

Interoons aim at providing electronically intelligent and comprehensive range of digital marketing solutions that exceed customer expectations. We implement revolutionary digital marketing ideas to achieve a common as well as the aggregate growth of the organization. Long-term customer relations and extended support are maintained.