Regional Support: Taxes (UK)

Victor
Shopify Staff
Shopify Staff
900 78 219

Hi @WoodyBrighton,

The issue you and others have referred to is a design in our tax system and I have confirmed with our taxes team that this is intended behaviour, not an unexpected error. I do of course appreciate why this is problematic for merchants operating in countries where prices are tax-inclusive who also wish to sell internationally, and have submitted numerous pieces of feedback to our development team as a result. As a member of our support team, I am able to communicate issues and requests I hear firsthand from merchants but my influence is limited. At this time, I do not have an update on when or if this change will be made, but if I learn of any developments I will be sure to post in this thread with information as it becomes available. 

Shopify does not intend to force non-Plus merchants onto our enterprise plan, and the platform available to merchants through our standard plans is not going to be made unavailable. Rather, the platform continues to evolve with new features and improvements over time. Shopify caters to both small and large businesses and there would be little sense in denying use of the platform to the many SMEs that use the platform to run their businesses. 

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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thebluehound
Excursionist
39 0 8

It is incredibly frustrating that my shop based in the NL will now also lose customers in the UK after Brexit since they will have to pay VAT (and Shopify can't work out a system that deducts VAT at check-out).  The same anger my US customers voice every time they have to pay VAT.  By viewing other threads, I see this issue has been brought up for several years.  I don't think your 'Tax Team' fully understands the cost to SMALL businesses.  I will also ask that this be escalated. All the apologies in the world won't help a struggling business during corona-times.

Victor
Shopify Staff
Shopify Staff
900 78 219

Hi @thebluehound,

Thank you for your candid feedback and I appreciate the frustrations that this issue can cause. Whilst I also understand that this is a long term feature request, I do know that our development team are aware of the requests we've had to make selling internationally easier for UK and EU-based merchants, and my colleague Cole from our product team provided a brief update on the situation here. As he mentioned, Shopify hopes to offer merchants greater control in terms of international prices and taxes in 2021, and this is something currently being looked into and worked on. I will be sure to stay personally updated with new features when they come and will communicate any changes here, as I know there is significant interest.

Kind regards,

Victor | Shopify Social Care

 

Victor | Social Care @ Shopify 
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thebluehound
Excursionist
39 0 8
Thanks and while I can appreciate the thought, 2021 is a long ways off....especially after many years of requesting a simple change. I will guarantee that in 3 months, many of us will be out of business. These are COVID times. While you focus your attentions on US accommodations, you’ve almost always ignored you EU customers. You and your team can take pleasure in your lack of attention to your EU customers. Yes, if we were larger companies, we would certainly move to another way of selling. We thank Shopify for their continued non support over the years.
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steph68a
New Member
2 0 0

Hi

I'm not sure how to go about this and Shopify doesn't seem to have the option. 

I am running my business in the UK and I am not VAT-registered (and do not need to be) yet there isn't the option on Shopify to not 'collect' VAT from United Kingdom?

By heading to Settings > Tax > United Kingdom > Edit it says I am 'collecting VAT in the United Kingdom' - of which I am not. It also tells me to input a VAT number, which I don't have because I am not registered. 

I've read through the little guide above and noticed it says to set Base Tax at 0% - which isn't the same as 'not collecting' but nevertheless I thought I would set my site to this, to save any impromptu mistakes. But it appears I don't have the option either. 

I have gone to the same menu as above and I do not have a section called Base Taxes under United Kingdom,  but I do for the Rest of the world profile.

What's going wrong or what am I doing wrong? 

This is confusing as it is, let alone adding Brexit to the mix. 

IGNORE THIS: 

I've just found the Remove function reading back through the comments - must have missed it the first time. Little disappointed this isn't shown on any of the main Shopify guides though. I've been searching for an hour for the solution via google, shopify and random forum posts! 

 

 

 

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Victor
Shopify Staff
Shopify Staff
900 78 219

Hi @steph68a,

I'm glad to see that you were able to get this resolved but am sorry to hear that the answer was so difficult to find! I'll be sure to pass this feedback on. If there's anything else you need help with, please let me know.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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Victor
Shopify Staff
Shopify Staff
900 78 219

Hey folks,

I am happy to be able to provide an update to you all today, as I have just learned that we have launched a new tax feature that allows merchants to include or exclude taxes based on the country the customer is based in. This means if you list prices as tax-inclusive on your store, with this feature you can allow customers in countries where you do not collect taxes to pay the tax-exclusive price. There is an example of how this feature works on our Help Center:

For example, Gabriel lives in a region with 10% tax, uses tax-inclusive pricing, and sells to several regions outside his own. He activates the Include or exclude tax based on your customer's country. He sells a product for $100.

 

- In his own region, the product costs $100. Using the formula Tax = (Tax Rate X Price) / (1 + Tax Rate), the product portion of the price is $90.91, and the tax portion of the price is $9.09.


- In regions where Gabriel is not required to charge tax, the product costs $90.91, the product portion of the price.


- In a region where Gabriel is required to charge tax at a 20% tax rate, the product costs $109.09. This price is calculated by applying the region's 20% tax rate to the product portion of the price.

This feature is currently in Beta, meaning it has only been rolled out to a limited number of merchants at this time. The rollout will continue in the coming weeks and I will seek to post updates when they come.

Kind regards,

Victor | Shopify Social Care

 

Victor | Social Care @ Shopify 
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thebluehound
Excursionist
39 0 8
Thanks,,so how do we know if we can be part of the beta program? I’m missing the xmas selling season and my shop in the NL is shut due to lockdown
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Victor
Shopify Staff
Shopify Staff
900 78 219

Hi @thebluehound,

Merchant cannot opt into the Beta rollout, and has currently only been made available to a limited percentage of merchants. Once the Beta period has concluded the feature should be made available to 100% of merchants. I will be sure to post an update here when that is the case.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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Oblotzky
Tourist
9 0 5

Thank you so much for that update! This seems to be exactly what I've been looking for ever since I opened my store. Glad it is finally being implemented!