Display wrong prices per location due to Tax / VAT issues

Display wrong prices per location due to Tax / VAT issues

Boujeepeople
New Member
4 0 0

Hello.

I hope somebody can help / may have had the same issue. 

I am in the UK and sell international. In the UK we sell items which shows prices inclusive of Tax ( VAT at 20%) So you sell an item for 100GBP that is what you see and pay. 

So a customer sees an item at 100 GBP in the UK, but the issue is a non UK customers should see the price at 83.33 GBP as that the price before tax as non UK customers no not need to pay UK Taxes. But they see 100GBP only when they get to checkout and put the address in the prices drops as shopify as notes no need to collect tax for non UK so they checkout at 83.33. But that means all the prices they see are 20% more then they should be paying thus me losing sales. 

Other side of this, shopify said they can only show prices with tax included or without. So without I have the same issue the UK customers sees the price at 83.33GBP then goes to check out and they are charged 100 GBP. Thus misleading customers with wrong prices.

I have looked at currency conversions but they just change the price of the price it is listed at so a US customer see the price at 140USD ( 100GBP X 1.4 ) when it should be 115 USD ( 83.33 x 1.4 ). 

I have looked at the unrated GEOLOCATION APP but lots of bad reviews. I am currently using MLV MULTI COUNTRY PRICES, but this is throwing up other issues. The prices are correct but creates a variant for each country, but my google Ads show the prices to all customers in USD i have talked a friend who is a Google specialist and nothing can be done on google side.

So everything together I need an apps / system / theme / whatever which will show the correct prices with Tax for UK and for non UK no tax. 

If anybody has had / going through this issue i would like to know. 

 

Thank you 

Reply 1 (1)

Victor
Shopify Staff
2611 236 552

Hi @Boujeepeople,

Thank you for getting in touch and for outlining your issue so thoroughly. This is a relatively common question that we see here as many merchants sell to different countries and different countries have different rules on whether or not sales tax should be included in the advertised prices of their products, however this is something you should be able to work around.

Shopify offers international pricing features that allow for merchants to set different prices for customers in different parts of the world. If you just want to display or hide taxes based on the customer's location, you can do this by enabling location-based taxes in your Shopify store's tax settings. This setting uses the customer's location to determine whether or not the customer is due to pay sales tax on their order, and works for the vast majority of countries and regions in the world.

I understand that you are also keen for customers to see the appropriate prices that they are due to pay on the entire storefront, including your product and collection pages, and not just at checkout. This should also be possible. If you head to Settings > Taxes in the Shopify admin, you'll see an option to include or exclude tax based on your customer's country. Enabling this will allow the Shopify system to determine whether or not to include sales tax in the prices of your products based on your own tax registration and your customer's location. In order to have prices display correctly before the customer reaches the checkout, the following must be true:

  • You sell in multiple currencies and use Shopify payments. In this case, prices are displayed correctly at checkout, on the product pages, and in the cart.
  • Customers make their purchases using an address that is located in a region that is eligible for price adjustment, have cookies enabled, have not cleared their browser cache, and are not visiting the store using incognito mode. In this case, prices are displayed correctly at checkout, on the product pages, and in the cart in subsequent visits to the store.

If all of the above is true and set up correctly, all customers should be able to see the correct product prices for them with the appropriate amount of tax included in the prices of your products.

I hope this explains things but please let me know if you have further questions.

Victor | Social Care @ Shopify 
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