Regional Support: Taxes (UK)

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New Member
3 0 0

Hi,

 

I’ve seen some videos and read posts about that topic. Will this be made more automatic or easier to manage in later updates?

Especially here in Europe every country, EU and non- EU member, has its own VATs as you know. 

Would be great if the system could automatically display the gross price or netto price/ tax free based on the customers country. 
We have in Austria regularly a VAT of 20%, and the reduced VAT is 10% for food, beverages, books & magazines, rents, public transport. 

So if a customer from Switzerland (non- EU member) orders 4 candles (20%) and 1 book (10%), I want my shop to display the correct prices for my customers country.  

Any chance this will happen? I know that would be a nightmare for every programmer...

 

thanks, Manfred

 

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New Member
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Yes that is correct, my issue is that our products are liable for VAT when over 22 but there are no VAT charges from products bought from others stores over 22. Do we need to register for VAT, are we not supplying the right paperwork?

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New Member
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We are setting up a grocery shop on Shopify and we need to charge VAT as per the following:

  1. Exempt = the product is not taxable
  2. Zero rated = 0%
  3. Reduced Rate = 5%
  4. Standard Rate = 20% on other items

This depends on the type of product that are sold. Is there a way to create different tax classes and assign products to them? We need to display prices inclusive of VAT and ensure correct taxes are charged at checkout.  

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New Member
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Hi 

 

Yes  this feature is built into Shopify. You need to code the products to reflect their correct VAT treatment. 

Also- I assume you are only selling locally?

 

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New Member
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Can you please provide some details as I couldnt find any. 

We are initially selling within UK only. 

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Shopify Staff
Shopify Staff
508 45 132

Hi all,

Apologies for the delay in my response here—there was an issue with our notifications system for this thread, and I was not aware of your posts here until I checked it today. I'll quote and respond to a number of your posts here.

@Dunne-08:


Hi. Our store is facing VAT fees when delivered to our international and UK customers and we have discovered that this is happening to our products and not happening from products bought and delivered from other similar stores. Our store is based in the US and so are other similar stores. The example I will give is clearer if I tell you from my personal experience as a customer.

I live in Ireland and work for a US clothing merchandise store. I had the store send me a t-shirt (from US to Ireland) to the value of $35 and I had to pay a VAT fee @23% on arrival to collect the hoodie.Around the same time I ordered a t-shirt, vinyl & CD from a different merchandise store where it was almost double the cost $68 but I did not have to pay any VAT on arrival, despite it costing more. I order from them frequently and never paid VAT fees.

So as you can see VAT charges occur from our merchandise but not from the other merchandise store even though we are in the exact same business and both ship using USPS. I cannot find out why this is happening, only that maybe VAT fees are calculated and included in shipping costs of other stores and we have not set that up.

Our customers from various countries have told us that they also had to pay fees on our products so it's not an exclusive problem to me in Ireland.

Do you have any idea what's going on? Any insight would be greatly appreciated.

Thank you for detailing your issue here. When you say your store is facing VAT fees when you export your products from the USA to Europe, can you clarify what is happening exactly? Are you receiving a notice to pay VAT directly, or is it a case that your customers are seemingly being charged VAT, either when they checkout or receive the products? Is your business solely based in the US, or do you have any presence in Europe? You mentioned you work for a US company but are based in Ireland—does the business have numerous employees based in Europe, and/ or physical presences such as warehouses or offices? 

From the sounds of it, the issue you're experiencing is something external of Shopify and may require consultation with a tax professional to resolve. However, if you can answer my questions above, I'll see if I can help at all.

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@FitzgeraldLobe:

Hi,

I’ve seen some videos and read posts about that topic. Will this be made more automatic or easier to manage in later updates?

Especially here in Europe every country, EU and non- EU member, has its own VATs as you know.Would be great if the system could automatically display the gross price or netto price/ tax free based on the customers country.

We have in Austria regularly a VAT of 20%, and the reduced VAT is 10% for food, beverages, books & magazines, rents, public transport.

So if a customer from Switzerland (non- EU member) orders 4 candles (20%) and 1 book (10%), I want my shop to display the correct prices for my customers country.

Any chance this will happen? I know that would be a nightmare for every programmer...

thanks, Manfred

The way pricing and taxes work within Shopify means that the tax-inclusive price will display and be charged to customers, irrespective of whether they are due to pay VAT or not. If they are due to pay VAT they will see the correct tax amount charged as part of the cost, whereas customers not required to pay VAT will still see the same price but their tax rate will be set at 0%. This is how the process works if you have taxes included in the price of your products.

However, you can charge both tax-inclusive and tax-exclusive prices if you change your Shopify settings so that the prices shown on the storefront do not include VAT, and then it is added on at checkout if a customer is required to pay. If you are required to show the tax-inclusive prices on your storefront, you can make some edits to your theme to have both prices display. This process is detailed in further detail in my opening post for this thread.

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@pb_ms:

We are setting up a grocery shop on Shopify and we need to charge VAT as per the following:

1. Exempt = the product is not taxable
2. Zero rated = 0%
3. Reduced Rate = 5%
4. Standard Rate = 20% on other items

This depends on the type of product that are sold. Is there a way to create different tax classes and assign products to them? We need to display prices inclusive of VAT and ensure correct taxes are charged at checkout.

 I believe this should be possible using our tax override feature. You'll be able to create collections specifically for this purpose, and then create a tax override to apply a specific tax rate to products you've added to the collection. I'd recommend checking out our guide on this over on our Help Center.

Kind regards,

Victor | Shopify Social Care

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Shopify Partner
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This is a great thread, thanks for putting this together Victor!

To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
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Hi Victor

We are a store charging UK VAT at various rates like @pb_ms: We are on Shopify Plan

We have set up Tax Rate Override collections which work OK but nowhere can I find how to get a report breaking down the sales in each tax category. The Tax Report lumps all taxes together as one total but I need to report the various tax rates separately to our tax authorities.

What am I missing?

FB

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Shopify Staff
Shopify Staff
508 45 132

Hi @FrancisByng,

Thank you for reaching out today. Unfortunately, I do not believe there is a detailed tax report within the Analytics section of the Shopify admin that shows you orders with a breakdown of which tax rate has been applied. Do your tax overrides apply to specific products and collections, or specific customers too? If they just apply to products/ collections, it may be possible to manipulate the main sales report to show only the products that apply to each override you've set up. If you can tell me a bit more about your overrides and what they apply to, I can perhaps offer a more workable solution.

Outside of the internal reports available in the Shopify admin, you could also consider a third-party reporting app available on the Shopify App Store. These apps offer more detailed analytics and most offer free trials, meaning you can install them and test them out to see if they offer the data you're looking for here.

Kind regards,

Victor | Shopify Social Care

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
9 0 0

Thanks for your reply, Victor

The additional tax rate categories have been set up as Collections. I have looked at manipulating the sales report but I cannot see any option to filter by Collection (which would capture the data for my tax categories) so I am stumped

I have also looked at some of the apps in the Shopify App Store but I have not been able to find anything suitable

Is there any way to download the detail of each transaction and then manipulate in Excel? I could then extract and total all order lines those with the relevant VAT charge

FB

 

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