EU business tax exemption base on VAT validation (VIES)

[forhaus]

Hi there,

Anyone can tell me how can I run a store in EU with shopify if they don't provide a tool at checkout to verify VAT id of a EU business and automatically apply tax exemption for that customer after VAT is validated?

I try to use an app "exemptify" but is buggy, don't look nice, only shows on cart page and don't store VAT ID in customer profile.

Thanks

[jesick]

We have the same question. Sufio seems to have a solution for this but we haven't tried it yet. It's also quite expensive and we don't need an invoice generator app. 

Any tips are welcome! 

[Floris-de-vries]

Hello,

As Shopify developers, we've been running into this issue for a long time. It's truly a necessity for many of our B2B clients. For this reason, we've created such an app ourselves to assist everyone with this. Additionally, it stores the VAT ID for the specific customer. The app can be viewed via the following link:

https://apps.shopify.com/oo-eu-tax-exemption

I hope this helps you further 🙂

[Anonymousko]

It seems that they Shopify does not support a decent VAT validation for B2B in EU...

That's a shame for Shopify as long as competitors are offering this (Prestashop, Bigcommerce, Woocommerce, etc...)

I was ready to opening my E-Commerce shop first time with SHOPIFY when I realized my B2B customers cannot enter their VAT number for tax exempt, WTF...

Again, if Shopify can release this feature that is essential !

[forhaus]

I just realize this too late...I trusted that if they operate in EU that they would comply with EU tax regulations. 

Don't seem to me that they will ever make this available since their answer to my request is always that they comply with EU regulations what is true if you sell just for private consumers but this is not even something that you can control since anyone can buy and provide a VAT id and in that case merchants are obliged to exempt business VAT from taxes and then what?? Shopify doesn't stop to impress me for the worse reasons most of them the biggest nonsenses ever!

I'm considering to report this to EU tax regulators to see what they will do...

[Floris-de-vries]

Hello,

We did indeed see with many of our B2B clients that this is really a must. For this reason, we have created the following app for everyone dealing with this.

https://apps.shopify.com/oo-eu-tax-exemption

I hope this helps you further 🙂

[Jeroen07]

Big + 1 here. If Shopify wants to take the EU market they need to find a solution so you can:

• Add a VAT number in the CHECKOUT (and not with shady 3th party plugins in the cart)
• Offer native VIES validation in that checkout
• Offer configuration possibilities depending on the country of the client

Even if you're mainly a B2C shop, there are alway people ordering your stuff with their company (and inserting a VAT number is essential).

Let's hop they take this seriously starting in 2023 ... 

[jesick]

Totally agree, 

we ave to tell customers which want to order with the Tax excempt to send us a screenshot of their basket so we create the order manually. Super unproductive and complicated. 

@Shopify  please.

[Pikok85]

Big +1

I am migrating to woocommerce because of this.

Paying $50 bucks for Sufio for this functionality is a scam really.

It's a basic thing and should not be paywalled like this.

+VIES validation + automatic VAT exemption on checkout.
It's extremely frustrating. How hard can this be to implement?

[Floris-de-vries]

Hello,

They unfortunately haven't picked this up yet. For this reason, we've created this app ourselves that is linked with VIES. I hope this helps those who are reading. If the implementation doesn't quite work out, please let us know 🙂

https://apps.shopify.com/oo-eu-tax-exemption

[jesick]

@Shopify is there any comment on this? That is super frustrating. We are currently operating 2 Stores and will be gone if this won't become an function within the next months. 

[Thomas-OwnWeb]

I have exactly the same problem. It's sad.

[Pikok85]

This is getting ridiculous. If shopify doesn't provide a solution fast I'm leaving the platform once and for all. Relying on buggy apps that look terrible and provide even worse user experience  means loosing lots of clients.

[ptaaq]

Yeah, for us this problem is also very problematic and makes us loose tons of small B2B clients. VAT-UE upgrade is a must-have for Shopify if you are operating in Europe.

We are starting to regret a decision to place our shop on Shopify. 

[jesick]

Maybe we should just post here every day until Shopify is gettin aware of this finally. 

[Anonymousko]

Do agree with you guys, I almost give up shopify when I discovered this missing feature that goes against the EU regulations laws…

I've worked out that the validation of the VAT number is done on the basket page.

Not optimal for the customer, too bad...

[ptaaq]

We are new to Shopify, so I have no idea if problems reported on the community forum are being followed by Shopify development team. Is it? 

Like this is a huge gap and Shopify is clearly reaching for EU e-commerce resellers so I just can't imagine that they wouldn't solve that problem in nearest future. 

Did anyone try to actually reach them with this issue and got any confirmed statement from developers regarding EU VAT upgrade? 

[jesick]

We tried reaching them. The first level support does not really understand the issue. Shopify tells merchants to basically open a second shop for B2B businesses. Very frustrating. 

[jesick]

We contacted the Shopify Support again today and got this reply. 
Everyone else here. Maybe it helps if you also open a request for this issue. 

Hello Julian, this is Jenny. 
I understand that you're concerned about not having a feature for your EU based businesses to enter their VAT number for VAT exemption directly within the Shopify platform. I recognize that this is an important feature for your business, and I'd like to offer some alternative solutions that may help address this issue.

1. Manual Tax Exemption: You can consider turning on/off tax exemption in your customer profiles as detailed in our help documentation on Edit customer profiles. 
   • I have a video recording of my test store on how this can be done.
2. Cart Notes: You can ask your customers to include their VAT number in the cart notes section before checking out. This way, you can manually adjust the tax exemption for each order/customers accordingly.
3. Third-Party App: To automate the VAT exemption process, you may want to consider using the DIY Tax Exempt Checkout app available in the Shopify App Store. This app allows your customers to update their tax exemption status. You can reach out to the app developer via email: info@daxanema.com for better understanding if this app will help your store to achieve this. 

Additionally, I have submitted your feedback regarding the VAT exemption feature to our Platform Development Team. While there is no specific timeline or guarantee that this will be implemented, your input is valuable to us, and we hope to see improvements in this area in the future. You can also stay updated on any platform changes through the Shopify Changelog. 
 
Thank you!

[ptaaq]

Guys, do any of you have news on that?

It's very frustrating as we keep getting questions from our customers about the possibility of B2B non-VAT purchases within the EU. And we still have to look for a workaround. 

This feature is so fundamental in European e-commerce sale, that I need help understanding that Shopify didn't implement it yet. How come? 

[Anonymousko]

Hey, there is no update about it. Every 2-3 months, I feedback shopify support team about that...

I'm checking every day, Shopify changelog but nothing is coming up 😑.

I also try to get in touch with shopify sales team in France but I get no answer... Maybe try to get in touch with your local sales team if you find one on LinkedIn...

[jesick]

Also here. Super frustrating. Shopify keeps mentioning the manual tax excempt feature but this doesn't work at all. We are already thinking about putting up a "copy" of our shop, just for businesses. Very very poor play here from Shopify playing deaf.

[Pikok85]

Have you tried "exemptify" app? I had a hard time getting it to work and look ok in my theme, but maybe You will have more luck. I couldn't also check if it works properly from other countries, there's no sandbox for it or one I could find. Maybe using VPN? Anyway it's the best app I could find.

[Anonymousko]

We are working with Exemptify app, and it is working very well, we got orders from many countries in EU and for now, the B2B customer always give his VAT number before ordering.

To help you, we did a trick on our website :

- We force the customer to go through the "shopping basket" page

You can test on our website here : https://komete-xr.com/en

[stone2k2]

Hello, thank you for your information here. it as very helpful to us, and i have also now installed the Exemptify app and forced the customer to go over the shopping basket page. Everything works well so far BUT our product does not require shipping and the user manuals says "Use the customer account VAT Id validation module if your products don't require shipping." any idea how this works or what i have to do in this case?

[MariaMaskup]

Hi, I am trying to use Exemptify, but with poor results. I just visited your store (looks cool). How did you manage to place VAT ID validation section in the right side in the basket page? When I'm trying to add this section into my basket page - it is awkwardly placed on the left side, completely invisible for the clients... Also, I see you managed to edit this section by adding an example of the VAT ID number, how did you edit it?

And the last question, does this app allows you not to charge with vat your business clients?

I'd appreciate your response 🙂

Many thanks

Maria

[Anonymousko]

Hey Maria,

Well, for placement, I ask to developer of the module (exemptify).
For editing, same thing, ask the developer (you can eg. my website as it's same module)

Last answer : Exactly, it allows to exempt VAT the customer (with valid VAT number in the field), it is working well on my shop

[MariaMaskup]

Hey Anonymousko, 

thanks for your reply 🙂

I managed to implement the Exemptify app correctly (uff :)). I studied your store, especially your cart page with the VAT ID validation - you have it done soo well and it looks understandable for a client as well.

I see on your cart page that the VAT ID validation section is translated as well, so I wonder witch app allows this to happen. Can I ask you which translation app do you use to have such a spotless language versions? I use Hextom, but I'm not happy with some text fragments that are not translated at all. 

Many thanks for your response again!

Maria

[Pikok85]

Their tactic is probably to "encourage" hiring of shopify experts and buying plugins (which are mostly useless, look bad and do not comply with eu data management laws). I've just yesterday stopped development of my shop because of that.

[ptaaq]

Okay, I just had a chat with Shopify Tech Support, explained them problem, and sent a link to this topic. The Support have the option to send a "FEATURE REQUEST" to the Development Team, which will check this feature and keep this in mind in any possible update works. 

I SUGGEST EVERYONE READING THIS SEND THEM SUCH REQUEST. 

It seems to be the only smart idea to get them aware of this problem, which doesn't make us grow the shopify business shops properly. 

Here is the shortcut link for you to chat the support: 

https://help.shopify.com/en/support/contact/chat

And here is the message that you can copy them if you are too busy to write your own: 

------------------------------------

Dear Shopify Support Team,

I am writing to bring to your attention a crucial missing feature in Shopify that is causing significant inconvenience and complications for European Union (EU) businesses engaged in B2B sales. Specifically, there is a lack of functionality to facilitate VAT exemption for customers who are registered in the VIES VAT database, which is essential for seamless EU trade.

Currently, EU companies registered in the VIES VAT database are unable to benefit from VAT exemption at the point of purchase on Shopify. This poses a significant challenge for businesses trying to conduct B2B transactions within the EU, as it directly affects the accuracy of taxation and the overall customer experience.

To address this issue effectively, I kindly request the implementation of a new field in the checkout process that verifies if the customer's VAT number is registered in the VIES VAT database. This validation process will enable the system to automatically adjust the VAT rate to 0% for eligible customers, ensuring compliance with EU regulations and streamlining the buying process for businesses involved in cross-border transactions.

By incorporating this feature, Shopify would not only enhance its platform's compatibility with EU e-commerce regulations but also provide an invaluable advantage to its customers by simplifying their VAT exemption procedures. This improvement would foster increased user satisfaction and promote the growth of B2B sales within the EU through the Shopify platform.

I understand that the development and implementation of new features require careful consideration and technical expertise. However, I strongly believe that addressing this critical issue would greatly benefit both Shopify and its EU user base, positioning the platform as a trusted and reliable solution for e-commerce operations in the European market.

Thank you for your attention to this matter. I look forward to hearing from you and would be happy to provide any additional information or support needed to expedite the implementation of this important feature. Your commitment to continuously improving the Shopify experience is greatly appreciated.

I will really appreciate if you could send that as a Feature Request to your Development Team. 

------------------------------------

STRENGTH IN NUMBERS 💪

So lets spam them as much as possible with that critical problem. 

[jesick]

Shopify is not interested this topic which is open for over a year now. Probably even longer. 

I will send the Request, but we don't see any change here in the near future. 

[wimbor]

I concur @Shopify  VIES Validation and proper EU VAT handling is a necessity.

[Floris-de-vries]

Hello,

As Shopify developers, we've been running into this issue for a long time. It's truly a necessity for many of our B2B clients. For this reason, we've created such an app ourselves to assist everyone with this. Additionally, it stores the VAT ID for the specific customer. The app can be viewed via the following link:

https://apps.shopify.com/oo-eu-tax-exemption

I hope this helps you further 🙂