I set up my store earlier this year. I sell wigs and hair pieces, offering international shipping.
If a person living in the UK wears wigs/hair pieces for a medical reason they can qualify for VAT relief (zero VAT) on their purchase. I have now VAT registered so I can offer this to UK customers. Other UK based wig companies are offering the VAT relief in different ways- either using a discount code to use at the checkout or refunding the VAT after the purchase.
As I understand it I will now need to un-tick 'All taxes are included in my prices' in the settings so that the VAT is added and shown at checkout and on invoices? What I need to figure out is:-
- What's the simplest way for me to set up the UK VAT relief for customers and how can I show this on my invoices?
- Can my products display a price including VAT and a price excluding VAT? I read this tutorial but it mentions products only having one variant but most of my products have lots of variants (colour options):-
I don't think using a discount code will work as that will mean 20% off the price, then 20% tax will be added to the discounted price. I might be wrong?
I will add that my knowledge of Shopify is basic. I don't know how to do coding. I had a lot of help setting up my store and I'm learning as I go, hence why I'm here looking for help. I'm trying to get my head around it all!
Nick here from Shopify.
A really good question as taxes and VAT can be tough to navigate around at the best of times.
The best way to go about setting up 0% VAT through Shopify is by doing a Tax Override or exemptions. To do this you would need to set a product or create a collection to be tax-exempt. If you wanted to you could also hide the collection from any of your active sales channels and link it directly to the customers you know can avail of this to make the tax override work. Shopify has a very helpful guide on this going through it all in more detail which you can find here.
Hope this helps and don't hesitate to ask should you have any other questions.
Thanks for your input on this.
I found out that you can tick the 'Customer is exempt from tax' box when you edit a customers details. You can also tag the customer as tax exempt to help you filter those customers.
What I now need to know is (as mentioned in previous post) - can my products display a price including VAT and a price excluding VAT?
Yes, it is possible for your products can display a price including VAT and a price excluding VAT. Shopify has an in-depth guide (Show VAT prices on your product pages) going through all the details and steps on how to do this and you can see it here.
Once this has been applied an example of how this should look like can be seen here.
All the best!
Ah, apologies. My mistake there on the repeat share of the article. In this case, it might be worth reaching out to a Shopify Expert to see if this is something they could help with as it seems quite custom at this stage because of the variant aspect. Shopify Experts do small tasks now and projects like this are potentially much more cost-effective. Reaching out to an expert here is at least worth exploring to see if this is possible.
I'm very interested in this thread and am searching for a solution or any advice on a solution if you have found one?
A number of my customers (but not all) will be eligible for VAT relief due to a disability. In an ideal world, within the purchase process on my site these customers could:
1. Tick a box saying they are eligible for VAT relief,
2. Then complete a standard declaration form with their details (which is then sent to me for record / tax purposes)
3. Complete the standard checkout process, purchasing the product with zero rated VAT.
Does anyone have any solutions to achieve something like this?
Creating a collection and applying a tax override appears to make the products VAT exempt on all purchases, which is not appropriate. A key step is also to allow customers to easily complete the short standard declaration form which I can then record.
Any help is greatly appreciated.