I'm a UK based business and I want to sell my (physical) products internationally. Let's focus on one international market that I have; the USA.
My website currently displays my products at £370.00 (Which includes VAT as per UK law).
I want my US based customers to see my products in USD (on the product page and the checkout). Currently, the 'automatic' converter simply uses a current exchange rate and lists my product at US$522.00.
1. My first issue is that this means my US customers are being charged the 20% VAT (since it's simply converting the £370.00). Really, the display price should be closer to US$423.00.
2. That being said, I don't simply want to remove the VAT, as I have additional overheads for US sales, so I'd like to set a 'solid' retail price for US customers at US$450.00. I believe that on a standard. 'Shopify' plan, I'll be able to specify a GBP to USD conversion. Therefore, I believe I can set my conversion from GBP to. USD at 1.216 (with a round-up to .00). This would mean that my £370.00 price would be displayed as (£370.00*1216=US$449.92) US$450.00.
Is my above 'solution' possible / a good idea? Surely this is a challenge faced by ALL stores that wish to sell globally and specify the prices in different currencies for different markets? I feel like I've been googling for days and have not come across a suggestion as per my possible. solution (2.) so I fear I'm missing something?
We've just moved to the Shopify platform and have similar requirements to you.
VAT exclusive pricing - this works as required. In the taxes page of settings add the taxes you collect (in our case just UK VAT). Then tick the 'All prices include tax' and 'Include or exclude tax based on your customer's country' in the tax calculations section.
Adjusting non-UK pricing in order to account for other overheads - From what I understand this is possible in the $79 shopify plan but not the $29 basic one. We don't need the other features of the $79 plan so need to calculate whether the extra $50 will be recouped in sales or whether an app will do the job.