Regional Support: Taxes (UK)

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Excursionist
16 0 4

Victor - thanks. It is not a feature request, it's a maths error in Shopify.

It is a critical coding error which prevents Shopify users from selling to international customers.

Can you please escalate to the critical problem team, not some product request team. Shopify is not currently working!

thanks

Andrew

 

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Tourist
5 0 3

Could not agree more!!

 

"It is not a feature request, it's a maths error in Shopify.

Can you please escalate to the critical problem team, not some product request team"

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Shopify Staff
Shopify Staff
547 51 138

Hi @WoodyBrighton,

As mentioned before, the listed price of an item will still be charged to all customers if you have prices are set to include taxes, regardless of whether or not they are set to pay taxes on the order or not. There are not pre-tax and post-tax price points when you have taxes included, only the singular listed price. I of course understand completely why this would be a desirable option, but the Shopify system does not currently allow for this.

If you are seeing customers who are not due to pay tax having a tax rate above 0% appear on their orders, irrespective of what the cost of the product or their order is, then that would be an error. Please let me know if this is the case.

Kind regards,

Victor | Shopify Social Care

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Excursionist
16 0 4

Hi Victor,

 

Thanks. Yes, I confirm 100% that it is an error.

 

Work with me through an example:

- A Shopify store in Australia will use the following settings: "My prices include taxes" is checked; Australian tax = 10%; and tax for most export destinations will be 0%, for example New Zealand for most stores will be set to 0%

- Please choose ANY Australian store running on Shopify (sure, Shopify is not doing very well in Australia, pick ANY one)

- Select an item and add to your cart

- Go to check out using an Australian address

- You will see price, for example, $100 and it will say "Includes Tax of $9.09" is included (being 10%)

- ie to work out the $9.09 Shopify has done the correct maths, that is Tax = Price - (Price / (1+tax rate))

- so far so good!

- now change your address to New Zealand

- You will see the text "Includes tax of 10% being $9.09" is removed, good

- But, you will also see that the price remains at $100, which is the error, bad

- The correct price should be Export Price = Price / (1+tax rate)

- Please repeat for 5 more Australian stores, you will see the same error every time (and understand why Shopify is not popular in Australia!)

 

This is not a feature request, the feature is very much there and it partly works.

- Shopify correctly calculates the tax for a domestic sale.

- For an export sale, Shopify does correctly remove the text about the tax being included.

- But it does not calculate the price correctly. It's just a math error in working out the export price.

 

Can you please escalate this error to the most senior person you can. Someone must have some pride in the product and be willing to fix this.

Really appreciate you taking a good look at this.

thanks

Andrew

 

 

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Tourist
5 0 3

Exactly this for all UK stores as well - with the slight difference that sales tax is 20% for most goods

 

But the logic of the maths (and the error) is identical and really frustrating...

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New Member
1 0 0

 

 

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Shopify Staff
Shopify Staff
547 51 138

Hi @WoodyBrighton,

I agree with you on the reasons why this would be beneficial, and can sympathize with your opinion on considering this an error rather than a feature request. However, the fact that the tax-inclusive price of a product is not reduced despite the customer being exempt from tax is the way our system works and our developers are aware, as it was built this way. This fact is referenced in our Help Documentation on tax-inclusive pricing:

If you set a customer to be tax exempt but you use tax-included pricing, then the customer will still be charged the full listed product price.

As I've mentioned before, I understand completely why this is disappointing to those who sell abroad and wish to charge their international customers less for their products, and I have consistently submitted feedback provided by yourself and others on this issue to try and raise awareness of the demand for this change. I hope on a personal level that this will be considered and will be sure to update this thread if and when a change is made, although at this time I do not have more information to share.

Kind regards,

Victor | Shopify Social Care

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New Member
2 0 0

Hi . I have set up a Shopify shop in the UK. Initially my products were just children's clothes which are 0% VAT. Also I don't turnover enough to be VAT registered so I wasn't concerned about this.

I now am adding some items that VAT is charged on. Do I tick or untick the box that says "Charge Tax on this Product" ? Not sure what I am meant to do here now.

Thanks 

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Shopify Staff
Shopify Staff
547 51 138

Hi @BowieFan,

Thank you for getting in touch with your question. If you are not required to charge any VAT on the products sold on your store, then you can set the UK tax rate to 0% in Settings > Taxes. However, if you are required to charge taxes on some products but not others, you can set the UK tax rate to the correct amount (20%) and then use the "Charge taxes on this product" option to enable taxes for some products but not others.

However, if you still don't meet HMRC's minimum turnover threshold to register for VAT, you likely won't need to charge taxes on any of your products. You may wish to consult with a tax professional if you are unsure of your obligations.

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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Excursionist
16 0 4

Hi Victor,

OK, we are agreed there is a coding error in Shopify.

We also agree that this error is documented in the help docs.

We agree this Shopify coding error prevents people selling abroad, as overseas sales are incorrectly charged domestic VAT.

We agree that you've sent this feedback to wherever it goes, thanks for doing that.

It's now been 4 months. 

Can you kindly provide an indication of when this error may be fixed, if at all?

Is it true that Shopify has stopped development of the base Shopify platform? Is it true that legacy Shopify will be turned off and customers pushed to Plus? When is this planned?

thanks

Andrew

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