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

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Shopify Staff
Shopify Staff
734 24 240

Hey, @ShayaEXQT !

 

Our developers are aware of the urgency but I don't have a date on when a solution is likely to be launched. 

 

All new features are announced in our Changelog. I recommend you bookmark that page for updates. 

 

I'm sorry I don't have a better answer for you at the moment. 

Aria | Social Care @ Shopify
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Tourist
4 0 5
Aria,
This is starting to get a bit ridiculous.
I am sure I am not the only paying customer expecting a basic EU legal requirement.

You should charge eu customers less since your platform is clearly not set up yet for the eu market. I don’t think your higher ups or techs understand that this can cause us problems with tax obligations, customer service etc.
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New Member
7 0 0
I have seen that there are stores that have this feature.

Hopefully today I'll be able to figure out how they're able to do this and implement it on my store and post the fix here.

It's absolutely ridiculous. It's not something that requires the Shopify tech team work on, its something that should've been built into the platform from the very beginning.
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Excursionist
16 0 12
We have a workaround but it's only partially satisfactory. We have added to
our code that it should take Shopify API prices and multiply by 1,19
(German VAT rate 19%). This works ok in our webshop (www.orimono) but
creates a bunch of other issues. We cannot use Shopfiy API as source for
anything, Google shopping ads, Instagram shop, Facebook shop, Wishlists etc
because the price is then being fetched from Shopify API which then shows
our prices excluding VAT to the customer, which is of course illegal in the
European Union. I've been angry and upset about this for such a long time
now, was promised over a year ago that the developers were already working
on this issue. Either Shopify needs new developers, or you simply lie to us
EU merchants (I know which one I put my money on...). For a market leading
company to be so indifferent to their customers having this (HUGE) issue,
leaving us open to potential lawsuits (not to talk about loss of sales) is
nothing short of extraordinary. And all we get is a "we are working on
it...". So Shopify, why should we believe you are actually working on a
solution? On your update page, one can clearly see where your priorities
lie as 3 of 4 updates are concerning Shopify Plus.
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New Member
7 0 0

This is what my developer did to get around it...

 

I've imported the products with all prices ex vat and I've changed the code to display prices with vat on your store front.
 
I've also set default 20% rates for all EU countries. You'll want to double check that you're happy with that before you re-open the store...
 
It seems to work fine now.
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Excursionist
16 0 12
This is what we've done as well, but it's not really a solution (even
though it does get the job done displaying the prices correctly on the
store front, as my previous post mentions all 3rd party applications will
fetch the wrong price and show it without VAT which is in fact illegal in
the European Union).
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New Member
7 0 0

It's far from ideal, but at least it works!

 

Do you have any issues with your order confirmations and invoices and how they show the prices?

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Tourist
5 0 2

Reiterate what Robin said. With this workaround, although your invoices show the 'correct' (i.e. inclusive of VAT) price, any time you try to market your products (e.g. Instagram, Facebook, Google Shopping), it will take the ex-VAT price, i.e. the wrong price. Making them impossible to use.

 

Shopify really need to pull a finger out and do something about this.

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Excursionist
16 0 12

Perhaps someone knows a journalist / youtuber etc with a big reach? Going public with this appalling criticism might be the only thing that actually prompts Shopify to do something about it. I assume the reason for Shopify's reluctancy and unwillingness to address this issue is that it's being prioritised to the bottom of the 2-do-list because they don't think it will bring any extra revenue to them. 

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Excursionist
16 0 12

Hi ShayaEXQT,

 
No, VAT must be specified on an invoice in the EU and it works ok. We have also added a rounding to avoid having prices shown like €398,99 and similar. Our customers are only shown the total VAT so if there are more than 1 item on the invoice, it’s not specified how much VAT for each item. We are a clothing store with the same 19% VAT rate for all our products so not that big of an issue. Some other things are slightly confusing, for example customer is shown price excluding VAT also in the cart / checkout until delivery country selected. Shopify has been aware of this issue for a long time but still hasn’t addressed it which is quite astonishing considering the effect it has on a VAST amount of merchants and the fix itself is not hard at all to program. 
 
The “solutions” we’ve been offered by Shopify has been:
1) Simply charge outside EU customers the same price (so they would pay the price of the VAT without paying the actual VAT). Fantastic tactic to build a loyal customer base.
2) Upgrade to Shopify Plus to be able to access the checkout code and make the necessary alterations. 
 
Thanks Shopify for your professionalism and helpfulness!
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