Hi,
I am based in the European Union and sell products in both the EU and in the USA.
With regards to taxes this means that, (1) for customers from USA the product prices need to be displayed without sales tax, which tax is then calculated and added at checkout and (2) for customers from the European Union product prices need to be displayed with tax (i.e. including VAT).
So all I need for my store is that: (1) the product prices displayed on my store front for visitors from the USA match the base prices I've chosen in my products dashboard (and taxes are subsequently added and calculated at checkout) and (2) the product prices displayed on my store front for visitors from the EU = base price + VAT.
The issue I'm faced with is that if I chose the options (a) "Include sales tax in product price and shipping rate" and (b) "Include or exclude tax based on your customer's country" in my tax settings, Shopify modifies the base price of my products for both USA as well as EU, instead of keeping the base price for USA and for visitors from the EU simply adding VAT to the base price.
It seems that Shopify considers the base price as the price including tax and deducts the applicable tax from the base price if you toggle the "Include sales tax in product price and shipping rate" option. This unfortunately mean that the prices being displayed on the storefront (and thus the gross margin of the products) vary from region to region depending on the applicable tax rate, which doesn't make any sense. As a merchant I don't care about taxes which are charged to the customer, all I care is selling my products at a price that I've chosen and which gives me a desired gross margin and then add the required taxes on top of that chosen base price, not the other way around. In other words the chosen base price of my product is not the desired final price for the customer; it is simply the price on the basis of which the applicable taxes are calculated and to which the calculated applicable tax is added.
The way Shopify considers the base price as the desired final price for the customer including taxes doesn't work and is nonsensical.
In other words, the feature I'm looking for is to have the option that the base price (i.e. the price chosen in product dashboard) is not the desired final price for the customer but simply the price on the basis of which the applicable tax is calculated. So, by way of example, if I sell a shirt for a base price of USD 22, a customer in USA will see a displayed price of USD 22 and sales tax will be calculated and added at checkout and a customer in EU (let's say Belgium) will see a displayed price of USD 26,62 (not taking into account currency conversion) which is the base price of USD 22 + VAT of 21%.
Thank you.
