Financing, tax rates, and accounting
I really need your help!
Our website is based in Sweden, which is a part of the European Union (EU). What this means is that if a customer within another EU country buys from us, we have to charge swedish VAT, which is no problem.
However, if a customer outside EU buys from us, say Norway for example, they should not be charged any VAT.
In my tax settings, i have 0% taxes for Norway, but the prices still include swedish taxes when a norwegian visits our store.
Is it possible to setup so when a customer outside EU enters their country in customer information in the checkout, the VAT is excluded?
Thanks in advance!
Mel here from Shopify. I have taken a look into this matter for you and while it is not yet a fully native feature (I have taken note of this feedback and passed it along to the team) there are some workarounds that may work for you and setting this up.
With some customization, a possible workaround would be to display prices including VAT and a price excluding VAT. There is a guide that goes over this, called Show VAT prices on your product page.
Another option would be to enable the functionality of an app to achieve this. One that comes to mind would be Exemptify, check it out and see what you think. This can help your shop be compliant with EU VAT regulations. Also, this guide on Tax overrides and exemptions may also be of assistance to you.
Hope this information helps! You can reach out to the Guru team https://help.shopify.com/questions if you have any questions.
Have a great day!
Mel O| Shopify
My name is Marcel from Digital Takeout. I can relate to your issue as some of our clients have the same.
Shopify won't collect VAT for your Norwegian customers if you set the rate at 0% but indeed, it still shows the VAT untill the customers reaches the checkout at the very end. To make it clear to your non-eu based customers, you probably want clear pricing in your store. We have developed an app which does exactly that. Have a look at some stores using the app.
Is this what you're looking for? Have a look at https://apps.shopify.com/partners/developer-2cf34194a44207d7
Let me know if you need any help or assistance, I'm happy to help! You can reach out to me through our website www.digital-takeout.com
Great day to you and thanks!
I searched around and found this article - include / exclude VAT in Shopify product prices. Seems like a good guide to filter in / out of EU orders, and accordingly display the VAT; this will solve your issue.
Hope this helped!
if you want to show both prices (with tax and without tax), you can use this app:
You can easily configurate it and show dual prices for each product in all collections.
I'm wondering if this function has been updated since this was posted? I have the exact same question as the person who started this thread.
Hope to hear back from you asap or would love your most updated suggestions on this matter. Switzerland and Norway are the two countries that we need assistance with.
Looking forward to your responses.
Is there any update here??
We are having the same problem.
We have a Norwegian shop, charging VAT to Norwegian customers, but f. ex Swedish customers should not pay any VAT.
How can I remove VAT for some countries, without removing it from Norway?
We figured it out! 🙂
Use the app as mentioned above: https://apps.shopify.com/exemptify
This makes it possible 🙂
For us Exemptify does not work too well. Some customers are reporting that it does not remove VAT from order even with valid EU VAT ID. It just simply does not work every time. Developers told that the reason might be that customers continue to checkout too quickly and Extempify is too slow to make the check from VIES. We can't control how quickly customers continue to checkout after entering the VAT ID, so I guess there is no fix.
Anyways this is a HUGE shortcoming in Shopify for any business selling products to other companies inside EU.
@Tivoli We are another Norway based business with the same challenge as you. Did you find a good solution for this problem?
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