Financing, tax rates, and accounting
I have a German based shop, for switzerland I don't want to add tax, I activated this:
All taxes are included in my prices YES
If selected, all taxes will be calculated using this formula:
tax = (tax rate * price) / (1 + tax rate). For example: £1.00 at 20% VAT will be £0.17 (rounded).
Charge taxes on shipping rates (US shipping taxes automatically calculated) YES
WHEN CUSTOMER buy it shows 0% Tax but the price is calculated with tax. How can I have it reduced by the tax?
Thank you Sabine.
Hi Sabine,
Nick here from Shopify!
Good question, taxes can be tough to figure out.
I did some research on this for you and found out how you can configure your tax settings to what you need them to do. Just to confirm, you are based in Germany, but want people buying from your store who are from Switzerland to have 0% tax costs, but keep the tax for other countries included in the price? If that sounds off to you, please let me know in a response and add as much detail and I can look into it further for you. If that is what are looking for, please see below:
Tax overrides and exemptions are what you will need to do this. We have a helpful guide explaining everything and anything related to tax overrides and exemptions which you can see here. In here it will show you that, if you do not need to charge sales tax, then you can create overrides and set the tax rates to 0%. Always check with a local tax authority to make sure that you are charging your customers the correct tax rates. The steps to do this are in the guide linked above. But don't hesitate to reach out to us again should you have any other questions about it. ?
Hope this helps explain this for you.
All the best,
Nick
To learn more visit the Shopify Help Center or the Community Blog.
Switzerland is already set to 0%, although I tried your suggestion I Tax override for Switzerland from already 0% to 0%.
It is still the same no tax is reduced for the customer - this seems to be a bug. I need a solution that works. Thank you Sabine.
Are you including taxes in your prices or letting Shopify determine when to apply it?
I am including since I have to in Germany now Shopify does not exclude it for all non EU countries this is what I need it is all set properly. e.g. for Switzerland to 0
Hi,
Did this get figured out. I have exactly the same problem. We are German and wish to sell to Switzerland at the net price not including the tax. Currently if a customer enters a Swiss address the tax line is removed, but the price is not reduced! Here an example of what I mean:
Current behavior
A German customer buys an item from our German shop for €79.90. The system shows:
Total Including EUR 12.76 in taxes EUR 79.90
(this implies a net price of EUR 67.14)
Now if a customer comes and enters a Swiss Shippiing address the system shows:
Total EUR 79.90
Which means effectively the system has increased the price for the Swiss customer! The requred behavior is that the system shows:
Total EUR 67.14
Which is the net price without tax. The tax does not need to be charged as the goods are being exported out of the EU. It is NOT a solution to remove the tick in the settings in Tax Settings under
All taxes are included in my prices
As although the taxes are then only added for relevant lands it is ALWAYS the case in Germany that prices are shown INCLUDING Sales Tax!
How can I solve this?
Hi, Sabine and Nathan,
If the Tax overrides and exemptions system doesn't work for you, I did come across an app from the Shopify apps tore which could solve this for you. It's called Exemptify and helps you to increase sales by making your shop compliant with EU VAT regulations. You can see the app here.
Hopefully, it can solve what you are looking for.
All the best, Nick
To learn more visit the Shopify Help Center or the Community Blog.
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