Removing tax for international orders from UK

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Shopify Partner
4 0 1

Thanks for your response @Victor 

I'm not sure what you mean about showing tax-inclusive and tax-exclusive prices simultaneously. I don't think anybody has that use-case, what we need is a way of consistently showing the full domestic price across all sales channels but subtracting that tax at the checkout for overseas customers.

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Shopify Staff
Shopify Staff
510 45 132

Hi @JamesONeill,

My apologies, I don't think I was particularly clear. If you show tax-inclusive pricing, customers who are not eligible to pay VAT/ sales tax will still pay the full price of the product, but the tax rate will show as 0%. If you decide to list your prices as tax-exclusive, then this can serve as a workaround—customers who are not eligible to pay VAT pay this pre-tax price, and customers who are required to pay VAT will pay this tax-exclusive price + the correct amount of tax on top of it.

As you mentioned in your prior comment though, there are limitations to this method and I submitted your feedback to our development team in relation to this. I believe in some countries you are required to list the tax-inclusive prices on your online store, so you can follow this guide to add them alongside the default tax-exclusive ones, but as you mentioned there are potential drawbacks to this method.

I understand what you're looking to achieve here but, unfortunately, it is not possible at this time. Your feedback has been submitted nonetheless and will be reviewed by our development team.

Kind regards,

Victor | Shopify Social Care

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Excursionist
12 0 2

I have this problem too... we are a new Australian store and want to sell internationally. Shopify CLAIMS to be able to support international sales, but a big warning to people considering using the platform is that, as Victor confirms, Shopify can't handle this basic element necessary for making international sales.

Australia has 10% VAT (called GST here) and prices are shown inclusive of this tax. But if I set the tax for an international sale to 0% (for example selling to New Zealand), Shopify doesn't adjust the sales price for the tax... it just has the Aussie selling price (which includes Aust VAT).

So disappointing!

Victor, how do we fix this?

I have just reviewed 10 supposedly leading Australian Shopify stores and none correctly remove VAT on sales to NZ (or apply NZ's 15% VAT).

Victor, can you PM me, I'd like to get a credit until Shopify can correct this.

 

 

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Shopify Staff
Shopify Staff
510 45 132

Hi @WoodyBrighton,

Thank you for your feedback on this and, as with others who have echoed similar sentiments in this thread, I can see why this is a disappointing restriction to come across. I know this is something our development team are aware of and I will be sure to pass your comments onto them for their consideration. Merchant feedback plays a large part in determining which changes are made to the platform so we appreciate the candid suggestions here.

Myself and my colleagues do not converse with merchants over the private messaging function here on the Community Forums, so please feel free to contact our support team at help.shopify.com/questions if you'd like to speak to a member of our team directly. I will say ahead of time that a credit or refund is unlikely for this complaint.

Please also feel free to let me know if you've any further questions about this matter.

Kind regards,

Victor | Shopify Social Care

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Excursionist
12 0 2

Thanks.

Actually, Shopify have already given me a credit, and I would encourage all Australian customers and other affected customers to demand their credit also.

Under Australian Consumer Law, you can't advertise to do something and then not deliver it. In fact, Shopify's liability may not just the fees but also the lost development time incurred by users.

The error in Shopify is that when you have "my prices include taxes" checked, then for international sales it is mistakenly using the price including local (domestic) taxes as the base price, instead of first taking off the local (domestic) tax.

It is a pretty obvious error and a pretty easy fix.

Shopify knows we are located in Australia, it knows the price includes tax, and it knows the tax is 10%. All it needs to do is to use the correct base price for international sales. The math is Base Price Excluding Tax = Price Including Tax / (1+ tax rate).

Can you please let us know the expected timing for this fix?

The marketing spin is "Sell everywhere" and "Build a global store in days" when actually, if your domestic market has tax included, then you can only sell in your domestic market because Shopify can't handle international taxes.

 

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Shopify Staff
Shopify Staff
510 45 132

Hi @WoodyBrighton,

Thank you for your reply and I'm glad to hear that you were able to receive a credit from our support team. I sympathize with your frustrations here and can see how this change would make selling internationally much easier and more efficient for you. At this time I have no update on when this change is due, if indeed it is made, but I was sure to submit your feedback and comments to our development team after I responded to your prior message. I know this is something other merchants (including those in this thread) would like to see amended so I hope this is something that is addressed soon, and I will look to update this thread if/ when it happens.

Kind regards,

Victor | Shopify Social Care

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New Member
2 0 0

In January when the UK leaves the European Union, goods exported from the UK to Europe will have to be minus the VAT as this will be collected at the point where the goods enter the EU and will be charged to the customer and any due duty.

When this happens we will still need by UK law to show the price including taxes on the product.
So anyone in europe may face the prospect of having to be charged VAT twice.

As this will effect all UK shopify sites in the UK and all their sales to Europe, is this a sufficiently serious problem that shopify will have to sort? and before January 1st.

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Shopify Staff
Shopify Staff
510 45 132

Hi @TimothyCann,

Thank you for reaching out about this. I know that our taxes team monitor wide-scale tax changes such as what you've referenced here, and I know with the transition period set to conclude on December 31, 2020, merchants in the UK will be eager to ensure that their Shopify stores are equipped to adapt to this change. I believe at this time this is something we are monitoring and will be keeping a close eye on as we head towards 2021. At this time we do not have an update to share, but I will be sure to pass on your comments to our taxes team.

Kind regards,

Victor | Shopify Social Care

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Excursionist
12 0 2

Hi Timothy,

For whatever reason Shopify seem to have stopped development on the base Shopify product some time ago. You'll see from other threads that that Shopify have been aware of this tax calculation error for a couple of years. Staff like Victor say "yes, we know it's a pain point" but the reality is they've not touched it for years.

If you want to sell to international customers, Shopify is not the product for you. The Shopify workaround is to create a separate store for each country.

We need to sell to international customers, so we're looking to migrate to Magento or BigCommerce.

Sounds like lots in the UK will have to migrate, good luck with the move!

Andrew

 

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New Member
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Is there any way to know if shopify will 'not' be providing a fix in time or even not working on the problem.

As we may well be forced to change platform as without a fix a large amount of our business around europe will become unworkable on the 1st of January. As it will with many businesses from the UK to Europe, and Europe to the UK.

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