No VAT when non-EU customers select in-store pickup

Patrick100
Shopify Partner
6 0 0

We are operating a shop in the EU.  Due to a brand pricing policy, all products must be sold at the same final price, regardless of where in the world the customer is located.  Originally, Shopify was deducting the VAT for customers in non-EU countries, which resulted in them having cheaper prices.

 

We solved this by creating separate Shopify Markets for EU and non-EU and configured a different pricing model for the markets.  For the EU market, Shopify automatically adds the VAT.  For the non-EU market, we increased the price of the products by to match the price increase of the VAT (since Shopify does not add the VAT for customers in non-EU countries).

 

Assuming a 19% VAT,

  • EU_Total Price = Base_Price * 1.19 (19% added by Shopify)
  • NonEU_Total_Price = Base_Price * 1.19 (19% added by us)

 

I have discovered a loophole in this system.  If a non-EU customer places a order with in-store pickup instead of delivery, neither the VAT nor our price increase is added to the order and the customer ends up paying the Base_Price.  It seems that Shopify is using the EU Price since the shop is located in the EU and not including the VAT because the customer is based outside the EU. 

 

Is this a bug or a feature?  Is there any way to have an identical price for in-store pickup using our Shopify Market configuration?

Replies 3 (3)

Rostislav
Shopify Partner
190 12 29

Hi Patric, 

 

Very interesting. Shopify has many bugs , but his one is funny.  How did you increase the price - did you use Market mark up or you fixed the price for the Market?  I want to repeat that mistake and write to Shopify.  

www.easproject.com - the best EU and UK VAT compliance solution.
Patrick100
Shopify Partner
6 0 0

Hi Rostislav.

 

Sorry, I just saw your response now.

 

I increased the price by going to Settings -> Markets -> MyNonEUMarket -> Products and Pricing -> Pricing.

 

I then added a Price Adjustment for an increase of 19%, which matches the VAT of the country in which the shop is located.

Rostislav
Shopify Partner
190 12 29

 

HI  Patrick,

So you use the standard way of doing it.  But the bug is interesting . I will try to replicate it in our test shop and inform Shopify 

 

 

 

www.easproject.com - the best EU and UK VAT compliance solution.