Shopify VAT tax settings flawed

4 0 0

I am a seller based in France, I signed up to the OSS sytem in July. My tax settings are set to "registered to OSS" since July 1st and the correct country’s VAT is correctly being charged on EU orders.

Until yesterday, when a customer from Luxembourg placed an order of 300€ and was charged the 17% LU VAT. This should not have happened since the OSS law is very clear that orders over 150€ must be VAT-exempt as the customer must pay for VAT and import duties at delivery. Even if I refund the undue VAT amount to that customer, the invoice will still show a VAT paid on the updated total.

I can’t believe that 6 weeks after the law came into effect, Shopify still hasn’t figured out how to adapt their system for EU sellers to be OSS compliant. I don’t even know how to handle this order now. I sent an email to support yesterday and haven’t yet gotten a reply. This is just infuriating.