No tax should be added when valid VAT ID for EU customers

Tourist
9 0 1

It is incredibly frustrating as I think we all likely agree that in many other areas Shopify is really very good. We are genuine fans of Shopify but this VAT issue has been an on going problem for us since the beginning. The only consolation for us is that more people are popping up saying the same thing - up until now we thought we were the only ones! Though we couldn't believe we were the only B2B Shopify merchant needing to implement EU VAT correctly! We've been working around the problem and at the moment our largest European distributor is on credit terms, so bypasses Shopify in any case. However, it has caused us a frustating amount of manual intervention.

I'm not an expert but I assume someone must be able to develop an app. that could deal with issue in the Shopping Cart even if Shopify are unwilling / unable to sort this out? However, in principle this is without question a fundamental requirement that should be dealt with by Shopify. Not making this aspect clear to customers and developers has evidently lead to a huge amount of wasted work and cost. Who would assume that an E-Commerce platform as large as Shopify didn't deal with this issue correctly!? Maybe send them an invoice for your wasted time and they'll take more notice!

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Tourist
9 0 1

By the way - you can exempt customers from VAT based on their e-mail address. This may work for historical customers but it doesn't obviously help with new customers. In fact we have some customers who use two and three different e-mail addresses even though it's the same client.

 

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Highlighted
Excursionist
10 0 8

Hi guys,

many of you experience the same problem with EU VAT handling. Since Shopify still not has a proper solution for this, I decided to set up a petiotion. Maybe we can convince Shopify together. Let's unite!

http://www.ipetitions.com/petition/shopify-eu-vat-exemption

#ShopifyVATexemption

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New Member
11 0 0

Hello Jeroen,

 

We have just spent 3 months getting outr Shopify store up and have just come accorss this issue ( since when shop is dormat you can't see checkout) and I am feeling sick to my stomach. Thank you for the petition. Given that this issue has gone on for 5 years I don't think that they care about it. This is a shame as otherwiese Shopify has been great. No matter how great they are in other aspect if they can not deal with EU VAT correctly then it is a deal killer really for Shopify.

 When I called and spoke with support today they were comepltely unaware that the issue even existed. I am not holding out hope that they have any interest in fixing this probelm. I wish they did! 

Has anyone found another e-commerce platform that seems willing and able to support the tax requirement for it's UK/ EU clients?

 

 

 

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Shopify Partner
2 0 2

I've solved this problem using a combination of Shopify's TAX rules feature, product variants and modal dialogs to collect VAT ID (VATIN) and validate it. It works but it's a bit kludgy and requires manual work to set up multiple product variants (B2B and B2C with different tax rules). Another drawback is that it creates friction for the buyer since they need to make additional choices after clicking checkout or when entering the store (depends on whether you want to be able to show prices with or without VAT). Ideally, it should be integrated in the checkout process.

However, since this seems to be a huge issue to many, I'm willing to help on a consulting basis.

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New Member
1 0 0

Could you update us about how you did it exactly ? I'm very interested

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New Member
2 0 0

Hi all,

I've been setting up Shopify for a European client, hence their requirement to have this VAT exemption for professionals and companies with valid EU VAT number.

And am proud to share with you that there is a fix !! Trick is to make use of Shopify API basically.

To do so you add a VAT form on for instance the account page of your online store. Client can enter VAT number and select linked address (assuming client has registered their billing address). Then when client submits form, you make an AJAX call to a script stored on different server (you need to run PHP, Django, Ruby script and this is not possible on Shopify server). Be aware that returned header from your script must allow CORS, else Javascript will not allow cross domain AJAX requests.

The script on your server basically needs to check if suppiled VAT number is valid and then store VAT number as metafield inside Shopify customer object. Also the customer object tax_exempt property needs to be set to false. These 2 object modifications are performed via the Shopify API (private key app). When checking VAT number validity you can make use of linked billing address information.

For chekcking VAT number validity I purchased http://codecanyon.net/item/eu-vat-number-validation/8727473. Else you can write your script that makes use of http://ec.europa.eu/taxation_customs/vies/ (http://ec.europa.eu/taxation_customs/vies/services/checkVatService if calling from script).

Once customer object updated, no VAT will be charged upon checkout.

That's summary of procedure. If you need exact code or more details I would be happy to assist you on consulting basis though, given that it took some time to come up with this idea.

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New Member
2 0 0

Hi all,

I've been setting up Shopify for a European client, hence their requirement to have this VAT exemption for professionals and companies with valid EU VAT number.

And am proud to share with you that there is a fix !! Trick is to make use of Shopify API basically.

To do so you add a VAT form on for instance the account page of your online store. Client can enter VAT number and select linked address (assuming client has registered their billing address). Then when client submits form, you make an AJAX call to a script stored on different server (you need to run PHP, Django, Ruby script and this is not possible on Shopify server). Be aware that returned header from your script must allow CORS, else Javascript will not allow cross domain AJAX requests.

The script on your server basically needs to check if suppiled VAT number is valid and then store VAT number as metafield inside Shopify customer object. Also the customer object tax_exempt property needs to be set to false. These 2 object modifications are performed via the Shopify API (private key app). When checking VAT number validity you can make use of linked billing address information.

For chekcking VAT number validity I purchased http://codecanyon.net/item/eu-vat-number-validation/8727473. Else you can write your script that makes use of http://ec.europa.eu/taxation_customs/vies/ (http://ec.europa.eu/taxation_customs/vies/services/checkVatService if calling from script).

Once customer object updated, no VAT will be charged upon checkout.

That's summary of procedure. If you need exact code or more details I would be happy to assist you on consulting basis though, given that it took some time to come up with this idea.

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Shopify Expert
9 0 0

@Christa Boren Are you still having the VAT issue? Send me a mail on info@studiorao.nl and I can see what we can do for you.

 

Kind Regards Robin

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Shopify Partner
52 0 27

Hi guys,

We have created a solution to capture and validate EU VAT numbers from your customers and automatically set them as VAT exempt when applicable.


We have also prepared a short guide about when VAT should be charged when selling to EU customers.

This feature is available in our invoicing app Sufio.

I would love to hear your feedback. If you have any questions or need any help just let me know.

-Katy from Sufio

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