How to not charge VAT on shipping for certain (used) products?

Cripes
New Member
2 0 0

Hi folks

 

First post! We have a store selling new and used products. We don't charge VAT on used products (being sold on commission by customers, so not our stock) and we don't want to charge VAT on the shipping as well.

Is this possible? We still want to charge VAT on shipping for new products.

Added complication is that there an additional category which shouldn't have VAT added. If customer orders a VAT-chargeable item then only the VAT for that item should be added to the overall shipping charge.

 

Any info or advice welcome - I've had a look but nothing's cropped up so far in my searching.

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Max
Shopify Staff
Shopify Staff
571 18 82

Hi, Cripes. 

This is Max from the Shopify Team. 

You can definitely make exceptions to your tax rules within Shopify. We call these overrides and exemptions and you can set them up following these instructions

  1. In your Shopify admin, click Products, and then click the name of the product.
  2. In the Pricing section, uncheck Charge taxes on this product.
  3. Click Save.

If you have a larger quantity of products to set as exemptions, you might want to create a collection for products that need a tax override.  This is a great way to keep track of a group of items, it also helps you when adding more inventory that might apply.

For shipping rates, there is a way to either turn taxes on or off for your shop. The details about this are listed here. The tricky part that would come in here is figuring out what to do in instances where customers purchase things that do not apply to to this rule (ie. only used items or a combination of new and used). I'd suggest checking in with a local tax authority to see what you need to claim and are able to claim.

Take a look and let us know if you need any more support getting that set up, or moving forward with changes on your shop!

Cheers, 
Max
support@shopify.com

Max | Social Care @ Shopify
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Cripes
New Member
2 0 0

Thanks for the input Max.

Dos this solution also apply to VAT on shipping, as we'd want to charge shipping VAT on certain products but not others? Your solution applies to products not to the shipping for those individual products, if I'm not mistaken?

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Max
Shopify Staff
Shopify Staff
571 18 82

Hi, Cripes. 

Max again. 

There is currently only an option to charge taxes on shipping as on or off for you store (this includes VAT). This is calculated based on the location of the customer and the rates you have applied. Shipping within Shopify is not based on individual products purchased, but the total order details. 

There are some apps that you can use to assign a shipping rate per product - like Better Shipping, so that could be a solution for charging the correct amount.  

Cheers, 
Max
support@shopify.com

Max | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
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Edward-Newgate
Navigator
446 18 39

Yes, you can do it by overriding taxes on Shopify. Below are simple steps: 

Step 1: Go to Settings, then go to Taxes
Log in your store with the store owner’s account, then go to the Settings field in the bottom right. In Settings, visit Taxes.
Step 2: Click the country name to be added the tax override
A list of all the shipping destinations is on display. Click the country name to be added the tax override
Step 3: Click Add a tax override under Tax overrides
Click Add a tax override in the Tax overrides field in the bottom of the page.
Step 4: Select Products to add overrides
An Add Tax Override for country dialog will appear. Select Products to add overrides for products shipped to this country.
Step 5: Select the collection to apply an override
Click the Select a collection button. A list of your product collections will be shown in a drop-down menu. Select the collection to apply an override.
Under Tax rate, enter the value of tax in the percentage you want to be collected for all the products in the selected collection. Note that this is the total amount charged, not the amount exempted.

Once done, click Add Override.
Step 6: Click Save
Click the Save button at the bottom of the page and you are finished.

This guide was originally posted on Avada, Orignal writing: Simple steps to override taxes on collection or shipping charge on Shopify

 

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