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

Tourist
5 0 1

Hi there, 

 

I am VAT registered and VAT is aready added to my retail prices on the eshop. 

Let's say I sell a product at £120. This has already VAT included in it. (£100 + VAT = 120.00)

If someone from the USA or Switzerland orders that product, how can I set it up so Shopify shows the price without VAT, ie £100. 

I have tried and tried and do not seem to be able to do this. 

 

Please let me know. 

Thank you

Athena

1 Like
Shopify Staff
Shopify Staff
415 6 72

Hey Athena,

Aria here, I'm on the Social Care team at Shopify. :)

By default, your tax settings should be correct as they are set based on the business address you entered for your store. If you believe they are wrong, however, you can change them.

Go to Settings > Taxes in your admin. You will see a list of countries with the rate of VAT to the right. A lot of them will say 0% because no tax is being charged. If your business address is in Europe, you should find only European countries are being charged VAT. 

If any of them are wrong, click on the name of the country, overtype the amount with the correct amount and click save. 

You can find more information in this guide.

Let me know if you have any questions. :)

Aria | Social Care @ Shopify
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 - Was your question answered? Mark it as an Accepted Solution
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Tourist
5 0 1

Hi Aria, 

Thank you for your reply. 

My US customers are being charged VAT. I do not see a different amount when they order...

Should I perhaps upload my prices without the VAT? Would shopify add VAT when my EU customers make a purchase? 

I am really confused...Read the guides over and over again but doesn't seem to work for me...

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Shopify Staff
Shopify Staff
415 6 72

Hey Athena,

Aria again. :)

This is a screenshot from my test store: 

I'm based in Canada so this box is unchecked because it's normal for the tax to be added on after the fact in North America. In Europe, it doesn't usually work that way. Most European's would have this box checked to include tax in their prices because that's the way it works there. I grew up in Scotland so I know if a British person went to buy something online and discovered tax was added on at checkout, it would surprise them because they expect the VAT to already be included. If you ARE including taxes in your prices though, everyone will be charged the same regardless of whether they need to pay tax. If you look at the order for your American customer, you should see the tax amount on the invoice is actually zero. 

Please check out this guide which explains a workaround if you'd like to have one price for European customers with tax included and a different price for your International customers. 

I hope it makes more sense now. :)

Aria | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
5 0 1

Hi Aria, 

That's exactly what I mean. In Europe, all prices are including VAT. 

I'll check the guide you are referring to, and will let you know if I have further questions. 

You've been so helpful already, thank you so much! :)

Athena

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New Member
15 0 0

Hi Athena,

I'm Marcel from Digital Takeout. Perhaps there's another option. If you do not want everyone to pay the same amount, so basically sell VAT free to customers outside the EU, you can try our app Digital Takeout: Multiple Pricing. It can display the VAT included and excluded price to your products. Selling VAT free can even help boost your sales as it's more appealing to shop for customers outside Europe.

In order to work correctly, you'll have set all prices in Shopify without VAT and Multiple Pricing adds your local VAT rate to the prices and displays it together with the VAT free price. It also allows you to set labels like 'ex. VAT'. Have a look if you're interested: https://apps.shopify.com/tax-free-shopify-vat

Thanks and let me know if you have any questions, I'm happy to answer them!

Marcel

Marcel Digital Takeout
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New Member
2 0 2

Hello I have a French site and i would like to take out the VAT to non european clients. Our price show  all included prices on each product sheet but at the end of the purchase a non european client would expect to see the price decrease buy taking out the vat for him. How to do that ?

Thank you for your help

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New Member
5 0 0

I am having the same issue as others here detailed in an other topic.
This system simply can not deduct VAT it can only ADD VAT and that is not corresponding to EU rules.
I seriously against paying for an app to do the most simple mathematics question for Shopify.
I have downloaded the app listed above, will use it for a week for free than i apply for charge back and compensation if Shopify support team can not come up with a legal solution for Europe.

This is a joke.

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New Member
2 0 2

I think Shopify should come up quickly with a solution for its European clients as we are all concern about that issue : showing All included  Tax prices in Europe and taking out the VAT for non European customers.

Can we have an answer from Shopify on that matter please ?

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New Member
5 0 0

I sure hope that this gets addressed immediately.
It is dangerous for a whole continent.
In germany you can get fined for 1500 to 15.000 for each time you make this mistake!

No joke, really! It has almost slipped by my radar, now having to run around in circles to fix this.

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