How not to charge VAT to non European and USA - Please help!

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Tourist
7 0 3

Magento is what I'm looking at.

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Excursionist
36 0 24

Hi.  Re your question on other platforms, we were on Magento before we moved to Shopify - it handled EU VAT perfectly.  It also had a number of other features that we've either had to use add-on apps or get developed into our theme in Shopify.  But at that stage, at least (we moved off it 7 years ago), it was a real pig to use.  We spent £10k with a developer creating the site, whereas I set up the Shopify site basically myself after we chose a theme. And just about any significant change involved going back to the developers while with Shopify I can handle just about everything myself.  But maybe Magento has changed since then...

Other than that, I haven't looked seriously at any other platforms yet - I am waiting for the details of any UK-EU deal to become clearer, and hoping that Shopify sort out this issue in the meantime.  

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New Member
3 0 0

Shopify is a powerful system. No doubt about that. 

But it clearly needs an European adaption concerning VATs and non VATs.

 

I have worked with a couple of different goods management systems and the first thing Shopify needs to change is to add a VAT field in the item creation for the shop. 

Shopify doesn't know the amount of VAT every item has, only that there are 2 VATs available.

 

I included a picture of a German software, which does it correctly as it should be.

 

Unbenannt.png

 

 

 

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Tourist
4 0 1

@Aria is there any update on this? I would really like to be able to offer the VAT exclusive price to customers that are not from the EU. It is quite clear that this is simply being ignored despite being such a fundamental necessity for merchants based in the EU and other regions. This isn't rocket science, this doesn't need "years" to develop.

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New Member
2 0 0

Hi everyone, we are setting up our first Shopify store, learning as much as we can, as we move along. With that said, I'm from Portugal where we have VAT set at 23% (for most products). In Spain it's 21%, Germany 19% and so on...

 

My questions are (I'm drop shipping from outside the EU):

 

  • I charge tax if I sell a product in Portugal. What about if I sell a product to a Spanish or German buyer? Do I charge his/hers countries VAT rate or Portugal's VAT? I most certainly shouldn't be charging no tax. When I order something from Amazon Germany I'm charged 19%, not Portugal's 23%.
  • All non-EU countries shall not be taxed, however, I'm selling a product and, as far as I'm aware, anytime you sell a product you must charge VAT.

 

Some help with these questions would be much appreciated.

 

Thank you in advance 

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Tourist
4 0 1

@JorgePereira as a EU vendor, you charge your own countries tax rate to any customer from a country that is part of the EU. For customers that reside outside of the EU, you charge no VAT. Getting that last part done correctly is the topic of this thread.

 

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New Member
2 0 0

@Oblotzky Thank you for your reply. I had just found this on a YouTube tutorial as well. It's been a long time since Shopify updated us with a solution... But, I still digress on whether I should charge VAT if I ship a product to the US. In terms of accounting, should I not charge VAT? I'll have to double check with an accountant to see if it's in accordance with Portuguese tax law. Thank you again

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Shopify Staff
Shopify Staff
605 20 194

Hey, @Oblotzky!

I did reach out to our Tax specialists because I know this is important to a lot of people. The bottom line is, we still don't have a timeframe for this.

Anyone who would like to be added to the feature request is welcome to provide me with their store URL so that I can add them. The more stores that are on there, the more urgency it creates to let our developers know how many people need this. 

In the meantime, a lot of businesses do use separate stores for the EU and US (we can do a multi-store discount if the products are the same) and others use apps such as Exemptify.

Aria | Social Care @ Shopify
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Excursionist
36 0 24
Hi @Aria. Please add me to the list. Shop is newsh.myshopify.com

Has the tax team seen my suggestion re a “quick fix” that would do the job?
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Excursionist
16 0 12

@Aria Us as well; orimonoeu.myshopify.com (orimono.eu)

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