Financing, tax rates, and accounting
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I've spent a few infuriating and fruitless hours today with the shopify+ AI bot trying to find a solution to this seemingly simple requirement:
I need consistent tax-inclusive pricing across the EU (i.e. pricing that matches € RRP and physical retailers across EU countries).
Simple? Apparently not. Seemingly, the 'Include sales tax in product price and shipping rate' option applies only to your home country. Shopify will display the correct price/tax when using your home country's VAT rate, but as soon as you change to a country with a different VAT rate in checkout, the total price will change to use use the new rate (i.e. if the new VAT rate is 1% higher then the total price will increase 1% — i.e. instead the tax portion of the price adjusting to keep the total the same (as 'Include sales tax in product price and shipping rate' implies), the total will change.
The result is wildly inconsistent pricing between countries. Can anyone suggest a solution?
FYI shopify's 'solution' was to create a separate market for each VAT rate, each with separate product pricing to compensate for VAT variances (seriously!).
Is this kind of thing not Shopify's USP? — what are we paying them for if not for out-of-the-box payment/tax/compliance solutions?
Before I can give you an answer I need a bit more info. Which is home country of your store? Do you collect taxes there? What is the setting (tax inclusive/tax exclusive) in your inventory? . What Shopify suggests is one possibility , it would work, but, depending on your answers, there are other workarounds. So, let me know the answers to my questions and I will give you a more precise reply.
Yours,
Rostislav
Had the same issue, finally figured it out while I was starting to configure a market for each VAT % in the EU as was recommended to you...
I've created a market to include all EU countries we sell to. Click on Taxes and duties
Standard this is set to "Dynamic Tax Display" which will calculate the price ex VAT in your home country and then add the applicable VAT rate for each country. Set it to "Show as included" and you're good. Quite surprised that there is no clear documentation on this.