Solved

"Include or exclude tax based on your customer’s country" feature doesn't work

Kjankko-US
Shopify Partner
236 4 41

Hi,

 

Sell products from the Deutsch store (VAT 19%).

 

When selling products from Deutsch to Norway -> the VAT is 0%. No matter if is it B2B or B2C sales. 

 

I have BSS commerce's B2B -app on the cart page (VAT Exempt etc.)

 

I have created:

- in Markets -section the own market for Norway

- AND checked "Include or exclude tax based on your customer’s country"

- "Not collecting taxes" in Norway (tax settings)

 

= That SHOULD exclude the VAT (19%) from the product's price when the buyer is from Norway. It doesn't work -> it shows the price INCLUDING VAT (19%)

What would cause that? 

 

NOTE: I don't have Shopify Payments in my store -> earlier in another store this worked properly, but does it need Shopify Payments now?

 

 

 

Accepted Solution (1)
Rostislav
Shopify Partner
190 12 29

This is an accepted solution.

Hi KJ,

It was a very thoughtful (not) support from the app developer.

But coming to your question.

These settings only are for B2C and I do not know how it would work with your B2B app.

1. One Stop Shop registration
This is to be used for B2C sales. You input this regisstration if you have Union OSS VAT scheme registration whic is used for intra EU B2C sales of goods and service. Registration can be received via GErman tax authorites. It allows you to sell B2C to all other 26 EU countries with reporting /paying of VAT quraterly to Germany for all distance EU sales..  
 
 
2. Micro-business exemption
 
This is when you sell per annum less than 10 000 EUR (doemestically and EU). You can claim then this examption and you German VAT will be applied for B2C sales to other EU countries.   
 
3. Country-specific registration
 
This is when you have individual VAT regsitratins in other EU countries (which I believe you do not). In this case you would report sales in the countries where you have VAT regsitration as domestic sales  ( I am simplifying rules  since it might be influenced by existance of Fixed establisment and sales of services - still Shopify implements nothing of that ) . VAT registrations in other countries will also influence you B2B sales . But , this is not you case , I gather. 
 
 

 

 

 

www.easproject.com - the best EU and UK VAT compliance solution.

View solution in original post

Replies 4 (4)

Rostislav
Shopify Partner
190 12 29

Hi Kjankko-US,

Technically it should not be like that. Let us walk through the settings :

 

Product :

 

Rostislav_5-1673045815513.png

 

 

Tax settings, I presume go like that  : 

Rostislav_0-1673045428176.png

Rostislav_1-1673045492398.pngRostislav_2-1673045610987.png

 

Markets settings :

 

Rostislav_3-1673045647365.png

 

In the Norway Market you should already see the price discounted for VAT : 

Rostislav_4-1673045762760.png

 

Let me know if it goes the same way in your store.

From there on we can see what goes wrong.

 

www.easproject.com - the Best EU and UK VAT complience solution, IOSS and more

 

 

 

 

 

 

www.easproject.com - the best EU and UK VAT compliance solution.
Kjankko-US
Shopify Partner
236 4 41

Hi @Rostislav 

 

It goes as you said. 

 

The problem there was that the B2B app had some technical issues with Shopify's Markets -due to some Shopify updates. This is what the app's customer service said to me.

In this same thread, I'll ask another question about taxes. I don't ask for tax-law info, but only thoughts.

If you have a Shopify store in the EU and sell (B2C & B2B). Also selling outside of EU.

 

The taxes should go this way:

Näyttökuva 2023-1-7 kello 9.42.13.png

 

What should be added to Tax settings, there are 3 different options:

1. One Stop Shop registration
2. Micro-business exemption
3. Country-specific registration

 

BR, 

KJ

Rostislav
Shopify Partner
190 12 29

This is an accepted solution.

Hi KJ,

It was a very thoughtful (not) support from the app developer.

But coming to your question.

These settings only are for B2C and I do not know how it would work with your B2B app.

1. One Stop Shop registration
This is to be used for B2C sales. You input this regisstration if you have Union OSS VAT scheme registration whic is used for intra EU B2C sales of goods and service. Registration can be received via GErman tax authorites. It allows you to sell B2C to all other 26 EU countries with reporting /paying of VAT quraterly to Germany for all distance EU sales..  
 
 
2. Micro-business exemption
 
This is when you sell per annum less than 10 000 EUR (doemestically and EU). You can claim then this examption and you German VAT will be applied for B2C sales to other EU countries.   
 
3. Country-specific registration
 
This is when you have individual VAT regsitratins in other EU countries (which I believe you do not). In this case you would report sales in the countries where you have VAT regsitration as domestic sales  ( I am simplifying rules  since it might be influenced by existance of Fixed establisment and sales of services - still Shopify implements nothing of that ) . VAT registrations in other countries will also influence you B2B sales . But , this is not you case , I gather. 
 
 

 

 

 

www.easproject.com - the best EU and UK VAT compliance solution.
Kjankko-US
Shopify Partner
236 4 41

Hi,

Thank you for the reply.

I think the OSS will work fine. 

I have to continue the conversation with the app developer and their challenges with Shopify Markets.

Thanks @Rostislav !