Hi everyone, my name is Cole and I work with the cross border team at Shopify.
As a past merchant myself who sold between New Zealand and Australia on the platform, I certainly empathize with all your sentiments and wanted to let you know that fixing how inclusive/exclusive tax pricing works when selling internationally is a major priority for us. This is a large internal change so we are unable to provide a specific timeline at the moment, but we will be sure to share updates in this thread when we can.
We are working hard on adding other global selling capabilities in addition to the above, and you will see more things around managing international pricing and import duties / taxes in 2021 as well. Again, we will share in this thread when available. We always appreciate your views and feedback and thank you for your patience.
This is the first time we have seen anyone from Shopify recognising that there is an issue that needs to be fixed, so that is a step forward.
However, the lack of a timeframe is frustrating. This is an issue which has been signalled for years and Shopify only now seems to be taking it seriously. We are a UK business with around 10% of our sales to consumers in EU countries. From 1 January we will not charge VAT to EU customers, but UK law will still require that our prices are shown inclusive of VAT which means that our EU customers will also pay the VAT-inclusive price. In addition, they will also have to pay their domestic VAT when the goods are imported into the EU, so will be overpaying. We will lose sales because of this, and Shopify will therefore also lose income.
This is actually a problem right now for sales to Jersey and Guernsey (which are not subject to VAT) as well as sales to other non-EU customers, but will become much more acute (and costly to us) from 1 January. Please fix this issue as soon as possible.