Prices of my products are shown on my store inclusive of Swiss taxes (my business and main clientele are based in Switzerland and everyone appreciates seeing the final price straight away, without hidden taxes that come up at checkout).
I therefore selected "All taxes are included in my prices" and updated 7.7% of VAT for Switzerland. And this is fine.
Now, I am shipping also abroad, i.e. in the UE. Let's assume that a client located in France wants to purchase an item that costs 100 Swiss Francs. As the item needs to ship to France, Swiss VAT 7.7% should be removed, therefore a French client should pay 100 - 7.7 = 92.3 Swiss Francs. Client will be charged local VAT separately by French customs.
My problem is that Shopify won't let me set up a -7.7% tax rate for any non-Swiss country I am shipping to, and these negative taxes are crucial for my website.
In fact, who wants to purchase a product on which a double tax (Swiss 7.7% + French 20%) will be applied? Noone!
I have tried with Taxes Overrides but also then, it is impossible to add a negative value.
Please is someone out there able to help me out with this crucial issue?
Looking forward to your replies guys!!
I'm using these negative tax rates and they are crucial to the way my site works.
We need to show tax inclusive prices on our website. (The tax is GST, a New Zealand tax.) But this tax needs to be removed for overseas buyers. I do this using negative tax rates, and it works perfectly.
Nick here from Shopify.
Great questions. Taxes are difficult to figure out on the best of days. After reading your post, there are a few things to note that might help make things more clear and outline some best next steps.
The first thing to note is that it is not possible to set a negative tax in any way on the platform. It's something which doesn't overly make sense and would cause confusion to the system. I think what's causing you the problem here is that you have set it to have taxes included. When you select to have taxes included, it means you will have them included or you won't. The best way to have the taxes removed if you absolutely need to have them on one store for Swiss taxes would be to clone and create another store and set up a new tax method for it. But just to reiterate you can't add/remove the taxes from being included per country/market that you're selling to. I know you mentioned tax overrides didn't work for you above for applying a negative tax value, but it could be worth looking into it again to find out how it could work for you to offer unique tax rates for a collection of products or on shipping charges.
Hope that helps clear that up for you and give you possible options for next steps should you decide to look into it further.
All the best, Nick
This simple question comes up over and over and doesn't seem to have a solution in shopify. The issue isn't actually that anyone wants to specify negative taxes, it's that we want customers in countries where tax has been set to zero to have the domestic VAT removed from their cart prices.
I'm in the UK and have set things up as follows:
(as in the guide here - https://help.shopify.com/en/manual/taxes/non-usa-tax-settings)
At checkout, if I choose UK or an EU country a message appears under the total "Including £X in taxes" which is fine; however if I choose a non-EU country (which has tax set to zero), the message disappears, but the total is not reduced. The message is actually in the code saying "Including £0.0 in taxes" but gets hidden.
This doesn't make sense - since the tax has become zero, the £X in the original message should be deducted from the prices and total. So - how can we have the domestic tax removed from the cart prices for customers in countries where tax has been set to zero?
I agree with you when you say:
"The issue isn't actually that anyone wants to specify negative taxes, it's that we want customers in countries where tax has been set to zero to have the domestic VAT removed from their cart prices."
I precisely want to be able to remove the domestic VAT automatically at checkout when the delivery country is non-domestic.
I thought setting negative taxes (i.e domestic VAT amount, negative) to all non-domestic countries would be the quickest workaround, however as this is not possible in Shopify I spent too much time trying to figure out another way.
I finally gave up and hired a shopify expert who collaborated with a developer to set it up nicely. If you're interested you can have a look here:
Swiss domestic VAT are included in the prices displayed on the website, and if you select another delivery country than Switzerland, tax is removed.
Quite happy with the result.
Yeah I think I figured this out - I think you need to remove taxes from all your prices and then modify template code to add them back in for display as explained here https://help.shopify.com/en/themes/customization/products/show-vat-prices
Great to hear this has been figured out for both of you. As I mentioned in my earlier response above, taxes can be difficult to figure out at the best of times.
Just to note @Crawft, that method/ tutorial is not supported by Shopify and unless you are comfortable with the modifications yourself, it could be work reaching out to a Shopify Expert directly to do this for you as a small task, similar to what Caterina did.