How not to charge VAT to non European and USA - Please help!

Athena_Procopio
Tourist
5 0 2

Hi there, 

 

I am VAT registered and VAT is aready added to my retail prices on the eshop. 

Let's say I sell a product at £120. This has already VAT included in it. (£100 + VAT = 120.00)

If someone from the USA or Switzerland orders that product, how can I set it up so Shopify shows the price without VAT, ie £100. 

I have tried and tried and do not seem to be able to do this. 

 

Please let me know. 

Thank you

Athena

Replies 183 (183)
Aria
Shopify Staff
Shopify Staff
853 34 340

Hey Athena,

Aria here, I'm on the Social Care team at Shopify. 🙂

By default, your tax settings should be correct as they are set based on the business address you entered for your store. If you believe they are wrong, however, you can change them.

Go to Settings > Taxes in your admin. You will see a list of countries with the rate of VAT to the right. A lot of them will say 0% because no tax is being charged. If your business address is in Europe, you should find only European countries are being charged VAT. 

If any of them are wrong, click on the name of the country, overtype the amount with the correct amount and click save. 

You can find more information in this guide.

Let me know if you have any questions. 🙂

Aria | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Athena_Procopio
Tourist
5 0 2

Hi Aria, 

Thank you for your reply. 

My US customers are being charged VAT. I do not see a different amount when they order...

Should I perhaps upload my prices without the VAT? Would shopify add VAT when my EU customers make a purchase? 

I am really confused...Read the guides over and over again but doesn't seem to work for me...

Aria
Shopify Staff
Shopify Staff
853 34 340

Hey Athena,

Aria again. 🙂

This is a screenshot from my test store: 

I'm based in Canada so this box is unchecked because it's normal for the tax to be added on after the fact in North America. In Europe, it doesn't usually work that way. Most European's would have this box checked to include tax in their prices because that's the way it works there. I grew up in Scotland so I know if a British person went to buy something online and discovered tax was added on at checkout, it would surprise them because they expect the VAT to already be included. If you ARE including taxes in your prices though, everyone will be charged the same regardless of whether they need to pay tax. If you look at the order for your American customer, you should see the tax amount on the invoice is actually zero. 

Please check out this guide which explains a workaround if you'd like to have one price for European customers with tax included and a different price for your International customers. 

I hope it makes more sense now. 🙂

Aria | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

Athena_Procopio
Tourist
5 0 2

Hi Aria, 

That's exactly what I mean. In Europe, all prices are including VAT. 

I'll check the guide you are referring to, and will let you know if I have further questions. 

You've been so helpful already, thank you so much! 🙂

Athena

Digital_Takeout
New Member
15 0 0

Hi Athena,

I'm Marcel from Digital Takeout. Perhaps there's another option. If you do not want everyone to pay the same amount, so basically sell VAT free to customers outside the EU, you can try our app Digital Takeout: Multiple Pricing. It can display the VAT included and excluded price to your products. Selling VAT free can even help boost your sales as it's more appealing to shop for customers outside Europe.

In order to work correctly, you'll have set all prices in Shopify without VAT and Multiple Pricing adds your local VAT rate to the prices and displays it together with the VAT free price. It also allows you to set labels like 'ex. VAT'. Have a look if you're interested: https://apps.shopify.com/tax-free-shopify-vat

Thanks and let me know if you have any questions, I'm happy to answer them!

Marcel

Marcel Digital Takeout
Phane_Tavidian
New Member
2 0 5

Hello I have a French site and i would like to take out the VAT to non european clients. Our price show  all included prices on each product sheet but at the end of the purchase a non european client would expect to see the price decrease buy taking out the vat for him. How to do that ?

Thank you for your help

tilus
Tourist
8 0 5

I am having the same issue as others here detailed in an other topic.
This system simply can not deduct VAT it can only ADD VAT and that is not corresponding to EU rules.
I seriously against paying for an app to do the most simple mathematics question for Shopify.
I have downloaded the app listed above, will use it for a week for free than i apply for charge back and compensation if Shopify support team can not come up with a legal solution for Europe.

This is a joke.

Phane_Tavidian
New Member
2 0 5

I think Shopify should come up quickly with a solution for its European clients as we are all concern about that issue : showing All included  Tax prices in Europe and taking out the VAT for non European customers.

Can we have an answer from Shopify on that matter please ?

tilus
Tourist
8 0 5

I sure hope that this gets addressed immediately.
It is dangerous for a whole continent.
In germany you can get fined for 1500 to 15.000 for each time you make this mistake!

No joke, really! It has almost slipped by my radar, now having to run around in circles to fix this.

Robin_K
Excursionist
30 0 20
Hi,

Did you find a solution to your problems? We have been having issues with VAT and non EU customers for years and Shopify keep ignore us merchants for a request that is SO simple to fix for them.
Robin_K
Excursionist
30 0 20
And can a Shopify employee please stop ignoring our messages? What’s the point of you being on this forum when you cannot even provide replies to multiple merchant questions?
tilus
Tourist
8 0 5

I have used the app that was recommended here, and it sort of works. You can check my store at www.racewerk.com
It still can not deduct VAT, but what it can do is showing prices both with VAT and without and checkout does add VAT for EU costumers.
It is sub optimal, but i got no help from Shopify team.

tilus
Tourist
8 0 5

Hello guys!

I was so proud that this issue was solved.
It is in past sense because it does not work for me anymore.
Recently i have discovered that the app is not working. So i have deactivated and reinstalled the latest version.

It resulted in a weird bug:

64407956_675142969582661_2566698861548535808_n.png

Now i had 3 pricing, and security problem, so i have disabled and uninstalled the app.
Now my collection pages show me a big blank screen, the whole shop is broken as is:
Capture2.JPG

What's up with shopify not wanting to conform to EU rules & what is wrong with the app?

NicolasPLT
New Member
3 0 0

Hi,  did you find a solution about deducting VAT instead of Adding VAT ? Thanks !

 

Best

 

Nicolas

tilus
Tourist
8 0 5

It seems like Shipify in general does not give a **bleep** about this very simple request.

There are a few apps present that will show both exl. and incl VAT numbers, and the CART does learn (after you enter the address) if the costumer is inside our outside EU so it deducts TAX accordingly, while you still have to enter the price without VAT.
It is a half ass solution, but does more or less comply to EU rules.

I will not recommend apps this time...they all have drawbacks or a little work involved.
On the other hand Shopify support was very very very helpful every time.

Robin_K
Excursionist
30 0 20

I now about the "solution" with the double prices displayed but it's not really an option for us, thanks anyway.

 

Does anyone have any experience using a ghost store (in other words a store copy) with re-directs to the actual store? 

 

It's very exhausting that Shopify keeps ignoring this, perhaps if we keep on bumping this thread to keep it up top, maybe eventually someone from Shopify could at the very least have the decency to reply to us? This is a HUGE issue with Shopfiy and we are thinking about changing platform due to this. Nice job Shopify ignoring the EU market and just prioritising the US. Perhaps Shopify didn't get the memo that the EU actually is a significantly larger market then the US? 

 

Robin_K
Excursionist
30 0 20

@tilus 

 

You don't need an actual app to do this, it can be added to the code, however it's a flawed solution. We have a workaround solution where a code is instructing our prices to be multiplied by 1,19 (19% German VAT) and if a customer select a non EU country in the checkout, the VAT is removed. For this to work, we are adding all our prices in admin without VAT. There are a few significant issues with this method though:

 

- We are unable to display correct prices through 3rd party apps, eg. Instagram where we cannot use the Instagram shop feature. This is because all apps are fetching the prices from admin and because our prices are added without VAT, this is how they are displayed from 3rd party apps. This is not only very bad customer practice (showing a lower price on IG than in the shop) but even more importantly, it violates EU laws and is punishable with a hefty fine for each breach. 

 

- We are getting some weird prices shown in the shop (eg. €188,99). 

 

I really wish Shopify could stop ignoring us merchants, heck there are threads from almost 10 years ago where merchants are complaining about this very issue. A piece of advise for Shopify, either unlock the possibility to edit the checkout for other plans than PLUS or even simpler, add this directly into the system and voila!  

Robin_K
Excursionist
30 0 20

@Aria @Ava @Donohue @Nick @Trevor @Katy @Victor @Evan21 

 

Would any of you perhaps have anything to add to this thread, seeing as this is quite likely the biggest issue we (collective EU merchants) have?

Thank you! 

swiftus
Tourist
5 0 2

Glad I'm not the only one with this problem!

 

I use the 'times 1.2' to get the display price correct, but all of this makes marketing via 3rd party apps (as mentioned previously) impossible!

 

Given that this marketing channel is essential to success, I'm stuck.

 

Does the ability to edit the checkout process (if you have Shopify Plus) provide a potential solution?