How not to charge VAT to non European and USA - Please help!

Tourist
5 0 1

Hi Kickgame, Can you please give me the details of your developer? We have a similar issue and your approach of coding the Inc VAT price makes the most sense.

 

Our company is registered in the US but we sell in Europe and are VAT registered. 

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New Member
2 0 0

They're useless on this matter. They dance around the issue and ultimately advise you to pay for an 'expert' to customise your store when really it's a basic functionality required for all international sellers. It's simple

Europeans don't like to be surprised with added taxes 

Americans & Canadians are used to it

So if you're selling in Europe you want to have taxes included, but when you sell to i.e Americans you don't want to charge them the extra 20%. 

This is a glaringly obvious oversight on Shopify's behalf and there are countless threads on the matter all of which result in Shopify staff fobbing us off with explanations that skirt around the issue and offer no solutions other than to hire an 'expert' even if you're already being fleeced $2k a month for 'plus' services which are an absolute joke as it is. My advice is to move to a better platform, there are plenty of options now that actually care about the needs of businesses 

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Excursionist
21 0 7

Have you researched different platforms?  I looked into Squarespace (same problem) and WooCommerce is hard to get answers from (and not sure if I want a Wordpress based platform).  I need a platform that can easily integrate with FB and Instagram.  Suggestions?  Thanks

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Explorer
51 0 43

To all UK-based retailers concerned about Shopify's limitations on selling with ex-VAT prices where appropriate, and the impact on sales to EU customers after the end of this year, you should be aware of the EU VAT E=-commerce package due to come into force July 2021 - details can be found on the EU's Europa site here: https://ec.europa.eu/taxation_customs/business/vat/modernising-vat-cross-border-ecommerce_en

The key relevant change is this: Currently, when a non-EU retailer sells and ships into the EU in a B-to-C transaction, it is the EU-based customer who ends up having to pay the VAT as part of the customs clearance charges on importing the shipment.  From July 2021, this will change: the non-EU retailer (which will by then include UK retailers) will become liable to pay the VAT, via the EU's "VAT One-stop-shop" (MOSS), through which the retailer can account for and pay the VAT to all the EU countries to which they have made sales.  This changes the picture completely, as sale sto EU customers will effectively become VAT-inclusive as they are now, rather than VAT-free as they will be from January to July next year.

Enjoy!        

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Tourist
7 0 4

Hoping for an Update on this. My shop keeps growing and growing and I'm getting more and more complaints about the lack of VAT removal. How is this being ignored for years? It is a fundamental flaw in Shopify that is not being addressed at all. I cannot put into words how frustrating this is...

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Excursionist
17 0 13

@Aria Is it normal that you guys take this long amending issues with the platform? You replied well over a year ago that your developers were working on this, which obviously isn't true as this would be fixed a LONG time ago if true.

 

We can't help to think that this issue will never be addressed, and might even be intentional from Shopify to get merchants to sign up for PLUS with its ridiculous pricing. Has anyone already changed to another platform, and if so, can you share your experiences? We have started looking at options, and would appreciate some feedback. Don't take Shopify's word for fixing this, it's more likely than not that this will never be corrected. There might even be a case for a lawsuit since they are ignoring EU guidelines and laws on this issue, anyone interested in a class action lawsuit? We are based in Germany btw. 

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Excursionist
21 0 7
Love to. Aria no longer answers any of these and to assume ‘Plus’, at a ridiculous price of €2k/mo will generate enough business to make money is crazy.
Shopify really only satisfies the requests of their Canadian/US base.
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Excursionist
21 0 7

From another forum not moderated by Aria: https://community.shopify.com/c/Accounting-Taxes/Regional-Support-Taxes-UK/m-p/991900#M4933 

It seems like something is happening in Beta form.  It's mentioned at the end of the discussion and submitted by a moderator named Victor.  Unless I'm mis-reading, it seems like it might be a solution?

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Explorer
51 0 43

Hi, folks.  thebluehound's post below refers to a post on another thread, and I have confirmed Shopify have FINALLY come up with a solution.  @Aria, do you know about the new facility, and if so why aren't you publicising it?

If you go to your tax settings, you will see a new setting called "Include or exclude tax based on a customer's country" - it has at least appeared in mine.  If you look at the detail on this, it does everything we've been asking for - it allows you to charge VAT-free prices to countries where VAT isn't chargeable, even with prices set to "All prices include tax".  

There are a few limitations which you should review, but as far as I can see it's basically problem solved.   

 

Excursionist
21 0 7

I’m just glad I follow other threads.  Whoever is now moderating this one (maybe it’s not Aria anymore) should have published the solution.  It’s really a shame but let’s hope this becomes accessible to everyone soon.

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