How to apply different VAT rates for customized products?

Hankey
Visitor
2 0 0

Hi All,

 

I would like to ask for help;

 

Here in the Netherlands, VAT has 2 rates. High 21 % and low 9%.

 

When i sell a regular article (mug) is has a high VAT.

But when a customer customizes the product, the VAT of 9% can be applied.

 

My question is twofold:

- What app should i use for the customization?

- How can i configure the above situation.

 

Many thanks for you help in advance!

 

Kind regards,

 

Hank

Replies 3 (3)

Victor
Shopify Staff
2509 229 531

Hi @Hankey,

 

Thank you for reaching out. Once you have set up your taxes, product prices on your store should include the 21% standard VAT rate for the Netherlands by default. However, if you want to charge a different rate of tax for specific products, you can do so with a tax override. You can create a manual collection containing your custom products that are to be sold with the lower tax rate and set the override percentage to be 9%. This will inform Shopify's tax system to charge this rate of tax at checkout rather than the standard 21% for other products.

 

In terms product customization apps, you have a wide selection you can choose from on the Shopify App Store. I'd recommend taking some time to browse through these apps to see which ones best suit your store, and you can then install them to try them out.

Victor | Social Care @ Shopify 
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Hankey
Visitor
2 0 0
Dear Victor,

Many thanks!

But I don't see a specific resolution yet for my case:

I list a product as 21 VAT but due to a customization add (a line of text) the product now has to become 9%, with the personalization.

So it changes.

Can this be done with the overwrite? And how so?

Thank you so much for engaging!

Hank

Victor
Shopify Staff
2509 229 531

Hi @Hankey,

 

So yes, if you have a single product that can be either non-customized or customized then you might run into issues. The tax override I mentioned would apply to the whole product, so your best bet here would be to have one product that is non-customizable—this can be excluded from the override collection and thus the standard 21% VAT rate would apply—and one that is customizable, as this can be added to the override collection with the 9% tax rate applied.

 

Is this something you think would work on your store? I don't believe you'd be able to get these varying tax rates for the Netherlands without using a tax override, and as mentioned the product in question would need to be included in the override collection or excluded, dependant on what VAT rate you want applied.

Victor | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog