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

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Tourist
7 0 4
Hi - does this work if you are integrated with facebook shop and Instagram
shop. I've seen this as a workaround before and apparently it doesn't?
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Tourist
8 0 5

This is not acceptable.
It is like this for over a year now.
Get your stuff together!
i am ready to prepare legal action.
This is against the law, therefor we are all acting against european pricing rules - and we may all get fined

Plus our costumers costumers are confused.

It is an easy fix, just let us enter tax included prices and deduct the set amount of VAT when needed.
My 6 year old can do the math, why can`t this webshop engine do it?
When will you realize that it is NOT A RANDOM ISSUE - it is present on more than one continent and everyone is involved.

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Explorer
44 0 37

Hello.  This is an issue I raised with Shopify 6 years ago and have raised it with them regularly since. The response is always of the form "we are aware of this issue but have no plans to deal with it".  The impression I have gotten is that dealing with it "properly" represents a BIG change to Shopify's tax modules, and they haven't wanted to tackle it.   I have always found their attitude on an issue as fundamental as this unbelievable, particularly when they moved fast to implement the EU digital tax regime, which must have been far more complex to deal with.  

The latest Shopify responses on this thread suggest maybe Shopify have woken up to this being the really serious issue it always has been, but based on the history I'm not holding my breath.  I recently submitted a Shopify support request suggesting a way of handling this that wouldn't involve big changes to their tax routines. The suggestion is that, along with the setting "My prices include taxes", they provide a sub-setting "Don't charge tax for non-taxable sales".  This would only be available for sites choosing to set "My prices include taxes", which is normal for EU-based sites. If set, then rather than the current checkout behaviour, rather than simply charging the full inc. VAT price, it would take off the amount of tax that would be calculated for sales to the country where the store is based, for any situation where the sale was non-taxable (ie, either going to a country with tax set as zero, or for a non-taxable customer). This would effectively sell products to such destinations/customers at ex-VAT prices.

I believe this could be a quick and easy solution to problem of selling ex-VAT to non-EU customers.  If the new setting was introduced unset by default, there would be no impact on sites that chose not to use it.  I have however had no real feedback as to whether this suggestion is being looked into at all by the developers.

 

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Tourist
7 0 1

For us EU retailers that have to show prices including VAT, this is a real issue.

I would have thought that having the ability to change the tax code to be a minus number would have been the easier coding solution.

We could then change the tax rate to countries outside the EU to be -20% for us UK retailers

This will come to ahead when the UK leaves the EU next year and we will not charge VAT to our EU customers along with the rest of the World.

Come on shopify get it sorted!

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Tourist
7 0 4

This sounds like a perfect solution and I’m stunned that they won’t act on this after 6 years of asking! I’m losing 25% of my customers because of the failure to act on what is a legal compliance for brands based in the UK & EU. They are actually miss selling a service and we are paying full price for it. There are so many competitor brands that are able to sell worldwide - how are they doing so with Shopify and with full integration with FB etc. 

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Explorer
44 0 37

Unfortunately the negative tax solution wouldn't work.  The current Shopify functionality for a store with taxes included in prices is that the customer is charged the tax-inclusive price, no matter what the tax rate is applicable to that customer's shipping destination. Setting a -20% tax rate would not change this - the price charged would still be the full inc. VAT price.  We need a change that alters that basic logic & allows an ex-VAT price to be charged for destinations where VAT is not chargeable (my suggested mod also picks up the case of business-to-business sales within the EU, where again VAT is not chargeable).

As mentioned by a few others, this will be a HUGE problem for UK retailers once the UK is fully outside the EU VAT system, as sales will be VAT-free to all destinations other than the UK.  If this isn't looking like getting resolved by the end of the year, our site for one will be forced to move to another platform that has its act together on this.    

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Tourist
7 0 4

Agree Dan and I think yours could be the solution that works if only they would listen and respond. It really is a worrying situation to have to migrate to a completely new platform which I think is now an inevitability. 

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Excursionist
11 0 11

The upside is that this thread is active, the downside, no action from Shopify, we're about to publish our site with a transparent workaround, we've spent a lot of money with our developer even so it looks like we'll end up transferring to the platform we should have used in the first place. :-(

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Excursionist
11 0 11

This is normal, it is how the simplest business accounting program works, basic simple logic in Shopify's system.

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Tourist
4 0 3

Hi, I've been keeping eye on this thread and I'm disappointed nothing has been done about it by now. My question is do you know if another platform has this option available? I've not looked into it yet as I thought it would have been sorted on shopify by now.

I have a wholesale website based in IE  and have customers based in UK so I need this option with and without vat. At the moment my UK customers can't use the website for obvious reasons. Everything has to be done manually.

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