I have spent a long time reading throught the MANY topics regarding VAT and EU/Worldwide sales but can't seem to find a definitive answer.
We are a VAT registered UK business wanting to sell to individuals (not b2b) in the UK, EU and Rest of World. Has a solution or work-around been found to display prices including VAT and for the VAT to be removed for Worldwide customers?
This is now delaying our launch and I'm wishing I had done all the technical stuff before getting the shop to look nice!
Many thanks in advance for any assistance.
This EU VAT thing poses problems for the shop I'm setting up as well. I will be selling B2B to other EU countries, so no VAT should be calculated on those orders. On top of that, I will be selling items which have 6% VAT (books) and 21% VAT (all the rest), but apparently there's no way of setting that up in Shopify at this moment.
If anyone has any kind of solution for this, I'll be happy to hear from you!
This is more of a workaround than a solution, and can not be implemented on our upcoming shop because we have a requirement of item varieties. This issue is starting to become ridiculous, I've seen posts about this that are at least 4 years old, and still no fix from Shopify. This issue needs to be fixed once and for all. It's very frustrating to see an important issue like this being unfixed for so long time.
Hi, I have been wrestling with the same issue. Shopify support have provided links to two articles:
The first handles products with only one variant, the second multiple variants. I haven't yet tried to put this into action.
However, as noted this is really just a crude workaround. And it leaves difficulties, like having to calculate & enter ex-VAt prices with multiple decimal places for each product, and the rounding issues that can have two products priced at 4.50 & 3.00 total to 7.51.
There is an alternative - if considered commercially viable - which is to tick the box in tax settings 'my prices include tax' so that the system simply displays & charges VAT-inclusive prices throughout. That means non-EU customers get charged the full VAT-inclusive price, but this isn't illegal: the system doesn't show the VAT component for non-EU locations where tax is set to zero in the tax settings, so you are not purporting to have charged VAT, you are simply choosing to charge what is effectively a higher price to non-EU customers and pocket the extra margin that would have gone in VAT. Economically it's an attractive way to go - IF you think you can get away with it with your non-EU customers. All you are charging them is what's shown on the product pages, after all.
Having said this, I totally agree it's ridiculous that what is in so many ways an excellent & responsive service provider hasn't addressed properly the basic issue of proper handling of VAT-inclusive pricing within the EU. There are others who have done an excellent job of this, it isn't rocket science!
I must admit it seems odd this is not correctly addressed.
I would have thought, if you could;
1. Enter prices net of vat or inclusive of vat (inclusive to avoid rounding issues) so two options in set-up, add tax to net price or enter tax inclusive price and calculate the tax and net price to avoid rounding up that could add an extra penny for example.
2. Set- up tax rates for each country, for example in Uk, 20%
3 when supplying between eu states, price is shown either total price (net plus add vat) or if vat inclusive chosen in set-up (total price less vat, so for 20% tax! total price divided by 1.2 to arrive at price excluding vat). Then it should be made easy to grab, net, vat and totals in liquid and display as needed.
4. If supplying another EU business, then there needs to be the ability for that customer to enter their vat ID, so shopify knows to exclude vat element in price, just as it would also do for sales outside eu.
Hopefully with the new $ 100M investment, Shopify can implement the functionality required. I am sure the development cost will be easily covered by all the extra orders in Europe
I'm using the suggested work around to show prices with and without VAT, yet it continues to a major problem with rounding errors all over the place and a highly unprofessional "finish" for the custoomer. wilth so many EU customers, surely Shopify should answer the call to help and develop a built in/ easy solution. Update please Caroline Schnapp??
many of you experience the same problem with EU VAT handling. Since Shopify still not has a proper solution for this, I decided to set up a petiotion. Maybe we can convince Shopify together. Let's unite!