How to remove UK VAT when selling internationally?

How to remove UK VAT when selling internationally?

metropolitan
Tourist
11 0 5

Hi,

When selling UK to UK there is a 20% inclusive VAT.

When selling UK to EU/other I want my store price to be lower to exclude the default UK VAT in the price.

 

From the pictures, the UK price is £29:

bmwuk.jpg

In the picture below I chose France, but the price is €34 (which is £29 converted, which is wrong as it's the UK price including 20% VAT but should be lower)

bmwfrance.JPG

 

How may I change this so the international price is without any type of VAT (lower). We are not collecting VAT at checkout either. This will be charged for us and them at customs.

Thanks!

Replies 12 (12)

PurplePartner
Shopify Partner
193 17 33

Hi @metropolitan,

 

Thanks for being part of the Shopify community! Have you tried modifying the Taxes and duties or the Shopify Markets settings?

 

You can select not to collect taxes in the EU.

PurplePartner_0-1719845745882.png

 

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metropolitan
Tourist
11 0 5

Hi, 

 

my settings look like this. I've tried following the guide but I can't seem to "manage" the settings for any region/country like it explains to disable collecting/displaying taxes in other regions. Thanks!

 

tax and duties eu.JPGtax and duties 2.JPG

 

 

 

PurplePartner
Shopify Partner
193 17 33

Hi @metropolitan,

 

I can see there's an issue with your VAT Code. I'll try to have it fixed for you. Would you share access to the Tax settings in your Shopify store to investigate this further?

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metropolitan
Tourist
11 0 5

Hi, thanks for your reply. 

 

Yes I would share access, do I have to do anything?

 

Thanks again!

PurplePartner
Shopify Partner
193 17 33

Hi @metropolitan,

 

You need to share your Collaborator Code (a 4-digit code you can find in Settings -> Users & Permissions) and the Shopify URL (the one ending with .myshopify.com).

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metropolitan
Tourist
11 0 5

Hello,

 

Here is the code: 9395

and URL: redlineautos.myshopify.com

Thanks.

PurplePartner
Shopify Partner
193 17 33

Request sent.

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metropolitan
Tourist
11 0 5

Hello,

 

did you manage to find a solution/error with my VAT setup?

Many thanks!

PurplePartner
Shopify Partner
193 17 33

Hi  @metropolitan,

 

Thank you for your patience here. I had a look at your Settings and I can see what has to be changed in order to adjust the VAT Tax accordingly to the country you're selling to.

 

1) You need to go to Settings, which is placed in the bottom, left corner.

PurplePartner_0-1720523592447.png

 

2. Select Taxes & Duties from the left sidebar and search for European Union.

PurplePartner_1-1720523663852.png

 

3. Click on it and select "Update VAT registration". Get through the registration process - most likely you're a One-Stop Shop - and fill up all the details. Shopify will modify the VAT from one country to another once you add your tax information.

PurplePartner_2-1720523770073.png

 

 

This will solve your issue.

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metropolitan
Tourist
11 0 5

Thanks for reply, but we are in UK and trying to sell to EU, we have not registered IOSS as we’ve just started, so at the moment we would like to sell to EU without pre-collecting EU tax and send it as DDU. So how can we display the price to International customer with UK VAT removed please? for Example, a product we sell domestically at £90 this is include UK VAT at 20%, while sell this product to France or USA etc., this product will be displayed at £75 (UK VAT removed)

PurplePartner
Shopify Partner
193 17 33

I see. I am afraid I can not offer you proper advice in this situation - I encourage you to discuss with someone if it's possible to sell in other European countries without being registered as an OSS or similar tax structure.

 

You can also consider Shopify Markets Pro, which takes care of everything for you.

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Charles_Marks
Shopify Partner
12 0 2

I think all you need to do is got to Settings/Markets and top right you will se Preferences.  In there there is a Taxes option (last section) where you can turn on the "Include or Exclude Tax based on your customser'tax inclusion.jpgs country".

 

So long as you are not using Google Shopping feed this will be fine but it will break shopping ads as customers from different countries will see different prices and Google does not like/allow that.  This is very annoying and stupid and I am trying to find a proper work around for it but it may be ok for you.