How can we exclude VAT at checkout for customers outside the UK?

[sandra_21]

Good Day,

We have recently opened a shopify store in the UK with the intention to sell in Europe and other countries.

I have been reading a lot around the subject of taxes and dynamic tax-inclusive pricing, but still not finding my solution.

We are VAT registered in the UK and collect tax on any orders. My concern is that customers buying from countries outside the UK will have to pay UK VAT that is included in our prices and then VAT in their receiving country. 

How can we have the VAT amount taken out at checkout for new customers shopping outside the UK? I have seen this setting while shopping myself to a EU online store. The tax amount was deducted at checkout and I paid VAT with an invoice received from the courier company on delivery.

Thank you for your help!

[TrueProfit_Jen]

Hello @sandra_21 ,

To have the VAT amount taken out at checkout for new customers shopping outside the UK, you can try to follow these steps:

• Go to Settings -> Taxes -> Set up new tax rate for the countries you plan to sell to
• Ensure that the "Price based on customer location" option is enabled
• You may need to adjust your product prices to account for the VAT when selling to customers outside the UK. You can set your prices to exclude VAT, and the tax will be calculated and added at checkout based on the customer's location.
• Display tax-inclusive prices for EU customers and make exemptions for non-UK customers

Hope this can help.

Jen from TrueProfit

[sandra_21]

Dear Jen,

Thank you very much for taking the time to reply to my questions. 

Unfortunately, i am not sure we can apply your solution, as it requires us to collect VAT in the other countries outsite the UK, which we don't at the moment, as we are only registered in the UK for VAT. So i am not so sure of what is the solution.

Thank you very much for your help.