Financing, tax rates, and accounting
I'm located in the Netherlands and we have two VAT-rates, 21% and the lowered rate of 9%
My shop sells plants and these are taxed at 9%.
Because for Dutch tax laws I have to charge the VAT of the destination countries and for some countries those are very different. Croatia for example has 25%. Because I don't want to pay that difference myself I use dynamic pricing.
So shopify deducts the Dutch VAT, adds the Croatian one and that will be the displayed price.
The problem is that Shopify deducts the 21% rate, not the 9% even though in Markets-European Union-Netherlands it is set to 9%
So A product that would cost 109 euro in the Netherlands should cost 125 euro in Croatia:
(109/1,09) x 1,25 = 125,-
But it calculates:
(109/1,21) x 1,25 = 112,60
Can I change the percentage that Dynamic pricing deducts to get to the base price?
Any moderators who can answer this? I'm losing hundreds of euros a month this way, and it's driving me nuts.
Hi, @CuriousPlants!
Thanks for your post. I would recommend checking in with support here at the link, so that we can check out your set-up for the taxes.
Maz | Social Care @ Shopify
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