Hello warriors! I hope everyone is doing well.
I want to ask you for your help. I am trying to set up a store in Spain. Now VAT in Spain is 21%, which is set automatically when by inserting my VAT No. and setting up the Tax Collections in Shopify admin settings.
But do you happen to know how to configure your tax settings for the IVA/VAT exemption for the Canary Islands? The provinces of Canary Islands, Ceuta, and Melilla are excluded from the European Community VAT territories and therefore are tax-exempt; consequently, charge 0% tax when selling to these provinces from Spain or other EU countries.
Your help is much appreciated!
This issue has also another problem....
Calculated shipping costs by app or courier doesn't work for Canary Islands because in EVERY courier database those islands are not managed as "Spain" like in Shopify...
if you order and set as address Tenerife for example, the system won't find any tariffs because in every courier system that address is in another country: Canary Islands and not Spain.
Fixing the issue could be very very very simple if only Shopify would... and i don't understand why leaving things like this that are CLEARLY WRONG...
i emailed them this morning too.. they should just:
1- Remove "Las Palmas" and "Santa Cruz de Tenerife" from Spain provinces
2- Create another country called "Canary Islands" using their country code "IC"
in this way Shopify could fix 2 problems:
1- Correct VAT % for Canary Islands THAT IS NOT 21% like in Spain... (actually Shopify put Spanish vat on all Canary Islands because they are just a Spanish province)
2- Fix calculated shipping cost by app or courier... actually the system check the cost using a Spanish address... but on every courier system Tenerife IS NOT IN SPAIN.. BUT IN CANARY ISLANDS country code "IC"
it could be so easy to fix this....
i opened chat with support but they are total unwilling to do help/do nothing... not only... it's looked like the support neither know shopify settings.. very disappointing..
they suggested me to disable those province from selling... are they serious? this is the way they fix things? by disabling??
i'm not requesting a special feature...
please keep reporting this to shopify support all together... more requests, more chances to fix this
2you can't solve this...
you can only: treat all Spain as 0% VAT or treat all Spain as 21% VAT
shopify is unwilling to fix this by creating another country (Canary Islands) for those provinces... their reply was like "you can do shopify plus to fix this"
same problem is for USA associated states (micronesia, palau, marshall islands, american samoa, guam, northern mariana islands, puerto rico, us virgin islands).. they should remove them from USA and create a separate country for each of them... this will fix also a lot of secondary things with integration with couriers like preview of shipping costs and waybill creation
the only way to fix this is pushing shopify to consider this solution....
on all others ecommerce software this is as i described
I just don't send there.
You can make orders manually, applying a discount for the taxes and putting on the notes "The invoice does not include VAT due to article 21 of Law 37/1992" and / or indicate that "the operation is exempt (article 6.1.j) of Royal Decree 1619/2012, of November 30."