New Tax Configuration for EU - What you need to know

Highlighted
New Member
1 0 0

OSS change for EU VAT

As for 01 of June the rules for VAT thresholds and VAT registrations in EU countries are being simplified.

There is no need to register in each and every EU country where you do business also the VAT thresholds are disappearing.  This OSS ( one stop shop) set of rules will allow you to have one VAT registration ( country where you are based) and supply all other EU countries,  You need to charge correct VAT percentage per country.

With your normal VAT return your provide an OSS return,  the latter needs to specify revenue per country and charged VAT.  You pay to your national VAT authority who transfers the fund on your behalf to respective countries.   Easy Peasy.

Is Shopify able to apply different VAT percentages under the same VAT number ?  Furthermore,  will Shopify be able to generate a report specifying revenue and vat per EU country ?

This applies only B to C.

Example, my Dutch company, will trade across Europe under a Dutch VAT number applying German, Italian and Portuguese VAT on all transactions.  I supply an OSS vat return to the Dutch tax authorities, pay the Dutch authorities, who pay on my behalf the German, Italian and Portuguese VAT authorities.  

Looking forward hearing from you.

 

J

 

 

 

0 Likes
Highlighted
Shopify Staff
Shopify Staff
63 1 10

Hi @jacobPurplebone 

We will indeed make this change in June. 

If you'd like, you can DM me to speak a bit more about the reporting concerns - would love to understand your view of what you will need.

0 Likes
Highlighted
New Member
1 0 0

We have the same problem like users before. We have a B2B business and have to uncheck the "collect tax"-Checkbox for EVERY CUSTOMER manually. Customers register and order afterwards immediately (or mostly they don't because the price in the shopping cart is so high). So we don't have the time and possibility to uncheck. That means we have to correct it after order and payment (what creates more effort) because we have to pay the money back. And we also loose customers because they see the taxes in the shopping cart and cancel the shopping cart. Please tell us the time horizon when you fix that issue.

0 Likes