VAT Number

Highlighted
Shopify Staff (Retired)
Shopify Staff (Retired)
5711 0 150

@Graeme Markin will have better advice than I will for the rest of this as he's on the front lines with the VAT issues.

http://shopifyplus.com ::: http://twitter.com/bacchus
0 Likes
Highlighted
Tourist
5 0 3

@graemeaustin. Thanks for pushing this matter. It is a bit frustrating. It works with the language settings that @jamie focussed. Thats fine.

I have both b2b and b2c on my site. And as the rules in Europe are, i need to show the prices including tax. My question is then: Will it be possible to change the all ready included taxes to 0.00 when the customer adds his VAT number in the cart? Plus remove VAT when b2c the customer shops abroad from Europe?

Is it possible to code this as a cart attribute? Then the logic could then be to add taxes for the whole world and to remove the taxes once the right criteria is met. In this way the European legislation is applied.

0 Likes
Highlighted
Tourist
10 0 1

@Michael: My guess is that it will depend on how you interface with your payments gateway. If you use forms then my *guess* is that you could use javascript to manipulate the value of the fields after the submit button is pressed but before the data gets sent to the gateway. (My aim is to have an automatic flow from shopping cart to payment without my manual intervention).

I'm a week or two away from being able to test this theory as I'm a complete start-up and I'm waiting to be able to get a payment gateway lined up to try to code against.

If you think the principles sound fine, please let me know because I will pursue it asap thereafter.

Graeme

0 Likes
Highlighted
Tourist
5 0 3

@graemeaustin: Okay, i will try to see what is possible and update you on it. I'm also trying to get a full automatized flow of data running.

The VAT function is essential for many Shopify solution customers in Europe. I guess Shopify has a great advantage in getting the fundamental issues and possibilities both communicated and sorted out. It would be great to get knowledge of case story for this purpose.

1 Like
Highlighted
Tourist
10 0 1

@Michael: So am I right in thinking that right now you use the language translation technique to capture the VAT number and then have a manual step to validate the correct VAT rate (zero if EU vat no, X% if no EU vat no as you are B2B) before taking the credit card payment itself?

Graeme

0 Likes
Highlighted
Tourist
10 0 1

Update: to get round the EU VAT issue, I have added some code to my page to capture VAT numbers and country of origin of the customer. I have it set up so the number is validated against the EU VAT database service and only if a valid EU VAT number is provided, do I let customers get to the payment pages. Naturally, if they are outside the EU they get straight to the payment page instead.

This way I treat UK/Isle of Man VAT properly (ie I charge them UK VAT rates), I zero charge businesses in EU member states (as I am a B2B site) and I zero charge Rest of World businesses as the VAT rules tell me to do so.

Graeme

0 Likes
Highlighted
Tourist
4 0 1

@graemeaustin: That sounds excellent Graeme. I have been lurking around forums for quite some time looking for a solution for the EU VAT issues. 

Could you please share your method with us?

0 Likes
Highlighted
Tourist
10 0 1

@dodoman: Sorry for the delay in my response; I can't see how to be emailed when a thread I'm involved in gets updated.

What I have done has been achieved using javascript and html in the cart.liquid file.

Basically, I've added some extra fields to capture the Country of the buyer. I've listed UK and Isle of Man, then all other EU countries explicitly, and then just a Rest of World (ROW) element at the end.

If you choose anything apart from ROW, then I use javascript to populate a hidden field with the 2 character country code (and also change the content of a div so it can be seen on-screen). Then I throw a message on-screen to tell the buyer to enter the numerical part of their EU VAT number in another field. Behind the scenes, there's javascript which, if either the country or number part of the VAT changes, then combines those two elements in another hidden field. When this hidden field changes value (and is composed of both parts) then I call a freeware web service I found which sends back a true or false depending on whether the VIES database gives it an OK or not. The VIES database is provided by the EU to enable firms to validate EU VAT numbers.

Now I've added some javascript on the checkout button so that you can only checkout in the EU if you've provided a valid VAT number. I allow UK numbers through as I do not technically need to capture them and obviously ROW goes through without a VAT number too.

The hidden fields are stored as a cart note and cart attributes so that they stick to the order and I can see the info when the order is submitted.

Also I store the EU VAT number etc in a cookie so that when a user comes back to buy again, I can pre-populate the EU VAT details etc.

You can easily lift off my code from the web site www.fsbenchmarks.com but I'm happy to post more if you'd like. Also email me using graeme (dot) austin (at) fsbenchmarks (dot) com for any offline conversation if it helps. [I hope that's not in breach of the forum rules, if so I rescind that offer!!]

Graeme

 

PS In my tax settings, I have UK and Isle of Man set at the prevailing 20% and all EU countries set at 0%. FYI I sell downloadable reports from the UK - and I'm a B2B site too.

0 Likes
Highlighted
New Member
3 0 0

@graemeaustin - this is very helpful but B2B sites but do you have any idea how to resolve this for B2C sites? 

For most countries in the EU, three things are required: 

1) prices displayed need to include VAT 

2) VAT needs to be charged to customers within the EU (19.6% in France, 20% in Italy etc.) and not charged to customers outside the EU

3) invoices need to show the VAT for EU customers and no VAT for non-EU customers 

At this point, it seems like it's not possible to do that. If I sell a product, say, €10, then the price displayed needs to be €10. For EU customers, the invoice needs to show a 19.6% tax, €8.36 net + €1.64 VAT; for non-EU customers, it needs to show €10 (no VAT). 

Anther problem stems from the fact that in many EU countries, different product types have different tax rates. In France for example, most products are taxed at 19.6% but food products are taxed at 7%. At this point, Shopify doesn't let me edit tax rates for particular products. 

Would you know a way around that?

Thanks in advance for any tips... 

 

0 Likes
Highlighted
New Member
1 0 2

Hi Guys

We have exactly the same issues as Alexandre

We ship out of Denmark and ship a lot to Norway, they are placed outside the EU and should not pay VAT. But in the cart they just get the same price as everybody else, but just without VAT. We have a Magento store where this seems pretty standard, but we are about to move to Shopify for the ease of use. But apparently the settings are primarily made for the US/Canadian market.

Hope Shopify will look into this. It is pretty crucial.

2 Likes