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

New Member
8 0 0

Hello, i messed up my shipping rates and zones but i manages to fix them(i think) but after that when i went to "taxes" i had a yellow warning which said that not all countries are taxed, i pressed the button and ticked all those countries and the yellow message left

 

 still all of the counties in europe and rest of the world have the "not collecting" except for the country i live

 

is it supposed to be like that? or i did something wrong?

 

TAXES PIC.png

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Shopify Staff
Shopify Staff
509 14 122

Hey, @b1l4r4s !

 

Yes, this is correct. I'm not sure which country you're based in but in most cases, you won't charge sales tax to any customers outside of your own country.

 

I am in Canada and I have my own Shopify store. Only Canadian customers pay tax. In Canada, we have both Provincial and Federal tax. Customers in British Columbia will pay both of those taxes and the rest of Canada will pay Federal only. In Canada, we don't collect sales tax at all until our worldwide revenue is more than $30,000 CAD over the past 12 months.

 

You can find out more about how to correctly set up taxes in this guide

 

If you're still unsure, let me know which country you're in and I'll find you more specific information.

 

Keep in mind, Shopify won't submit your sales taxes to the government for you. We collect them on your behalf and then they are paid out to you along with the rest of your payout. I recommend you speak to an accountant or another tax professional local to you to find out how much you should be making in sales before you need to submit these taxes to the government. 

 

 

Aria | Social Care @ Shopify
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New Member
8 0 0

I live in Europe, Greece thanks you for info

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Shopify Staff
Shopify Staff
509 14 122

Thank you for confirming that. You certainly won't need to charge VAT on products you're shipping outside of Greece and you don't need to register for VAT until you make 10,000 Euro. I found some useful information on the Avalara website.

 

I should confirm, I'm not a tax expert and my advice shouldn't replace the advice of your accountant or another tax professional local to you.

Aria | Social Care @ Shopify
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Excursionist
11 0 1

Greece is part of EU, in the EU you have to charge VAT for private customers, for companies you don't need to. Outside of EU you don't need to charge VAT.

 

The problem is that within the EU it is mandatory to show price together with VAT, but it is impossible to do it in Shopify so that EU people would see the prices with VAT and people outside EU would see without VAT. 

 

Aria, this is a real and critical problem for all the businesses in EU, so is Shopify going to do something about it?

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Shopify Staff
Shopify Staff
509 14 122

I understand how much this affects your business. We sent the feedback to the developers and they are working on it but solving this will require a lot of complex changes, there is no simple solution. That doesn't mean it won't happen but it's likely to take months of planning following by a beta period before we can launch a solution. I wish I could tell you when it's likely to be solved but it's not possible to know that at the moment.

Aria | Social Care @ Shopify
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New Member
2 0 0

I'm glad I'm not the only one who has been attempting to find a solution to this. Extremely frustrating and to be honest, I really don't think Shopify should have launched this platform to EU Merchants without first being able to satisfy the requirements of EU commerce law. It now seems impossible to set up shop properly outside of the EU. This really is quite a serious issue and Shopify need to find a solution URGENTLY. However and please correct me if anyone knows any different or if I am missing something but is it possible to set up something that can handle a redirect for non EU customers (i.e. a pop up) which asks where they are in the world and then redirects to an identical site but one that has the appropriate tax rates set up on the back end systems, for each of those countries other than the EU. Surely Shopify could do a bit of research and set the code behind a number of redirects that reflect appropriate tax rates? We could then select which to countries we are selling to and shopify could automatically calculate this code, rather than merchants having to pay for an app to do simple maths and that don't really provide a proper solution. 

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New Member
2 0 0

It's also worth noting that although the Channel Islands, Guernsey and Gibralter are UK protectorates, they are also 0% rated. This really is getting too complicated. Shopify please sort.

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New Member
1 0 1

We are just about to open our site on Shopify, it's compulsory to sell from a VAT inclusive shop from UK and EU, I can see this is an active thread and I would expect a simple answer to this by the end of January 2020, We will need to find another platform if Shopify is not interested to solve this one.

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Excursionist
11 0 1

Thank you for the response, Aria. Though, is it really in development now? I've been on the platform for almost a year now, but i see that the topic has been up already for many years. So, is it actually being dealt with now?

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