Hi, I'm starting to work with shopify and I'm encountering this problem in the store that I am handling the prices of the products already include the VAT. But there are 2 cities to which no VAT is charged. I want to know if it is possible that when the user selects one of these cities the VAT can be subtracted from the total that the checkout shows and how it should be programmed. Thank you.
If you include tax in your prices it will be included for everyone. If you want tax to be included based on the customer location then use the tax rules.
More info on taxes can be found here:
Nick here from Shopify!
The first thing I always suggest regarding taxes is to check with your local tax authority to make sure you are charging your customers the correct amount of tax.
Regarding your query of removing VAT. When it comes to setting up your taxes so your customers are charged VAT, except the two cities which are not, you will just need to create a tax override in your Store Admin. I've included a helpful guide which will walk you through the set up for this here. It does say for digital goods, but you not to worry, it will work. All you would need to do is set it up for the products which you do sell.
We have another helpful guide which you can find here, that explains everything else you would need to know about tax overrides and exemptions.
All the best,
I don't see how this answers the OPs question which seems to be the same as i have.
If prices throughout the store include regional taxes and a customer from outside that region enters checkout, how can the taxes be SUBTRACTED from the total price so that the customer pays less?
- within taxable region: checkout shows "110 (including 10% tax)", customer pays 110
- outside taxable region: checkout shows "100", customer pays 100
If you set your products up to include tax, you really do mean it.
Regardless of where you're shipping the product to the customer will pay the tax inclusive price.
If you don't want that too happen don't include the tax into the price. Let the tax rules handle if tax should be set or not at checkout time.
So the correct answer is:
"No, this is not possible."
"No, shopify does not offer a tax setup for 'foreign' customers where VAT is auto-subtracted from tax-inclusive prices at checkout."
To expand the context, shopify has no (single shop instance) solution given the following:
- You want to show round, tax-inclusive prices, just like in a normal physical store, because you do neither want to annoy, disappoint nor confuse your customers at checkout.
- Some ugly VAT, say 9.3% (that easily yields to ugly rounding differences because shopify rounds your input to fixed 2 decimals.).
- You want to offer a refund of foreign VAT, just like a good physical store does.
- You do not want to send a physical VAT recovery receipt together with the goods, because many customers might not have the chance to get to a place, where they can actually redeem it. Anyways, it's too complicated.
- You want to follow the shopify mantra #1: grow your business. (Why does this make me vomit a bit...)