I hope you can help !
In my shopify shop I want to be able to sell to trade customers in another country for example Finland and they are VAT registered so I don’t charge them VAT how can they pay and let shopify rate the tax zero? Other domestic customers must pay VAT so really I need the VAT to be set by customer not by country. Is there a solution please to make a customer Tax Exempt? Thank you !
As you probably know, you can adjust the VAT by country in the Admin panel under Settings/Taxes but not by customer that I am aware of. This will zero the VAT for orders shipping to say Finland but ONLY if the customer's Shipping address for the goods is the country listed with zero VAT.
Shopify wrongly calculates the VAT based on the shipping address, not the billing address, which I have been moaning about for years but nothing has been done.
In effect if you have a UK customer who happens to want goods shipped to Finland, the VAT would show as Zero when in fact the customer should be paying 20% VAT. If your customer is in Finland but the shipping address is in the UK, the VAT charged will be 20% based on the UK shipping address. Again, incorrect.
European VAT is a complete nightmare with Shopify and I assume as a Candian based company they have either no undertstanding of European VAT, or any intention of resolving this ongoing issue for customers like us.
Zero VAT as you rightly say, of couse only applies if the customer has a VAT number. We too have a mix of business and consumer customers so this problem requires constant manual intervention to resolve what should be an automatic transaction.
Sorry this doesn't help solve your problem but you are not alone!