I was HORRIFIED to find out yesterday while on chat to Shopify support that the system seems to be BROKEN in how it treats international sales to Europe now. Firstly, did you realise that your INCLUSIVE price is now inclusive of ANY EU VAT, based on the customer? So if your customer is from Sweden, then Shopify consider your VAT inclusive price to be inclusive of that customers 25% VAT rate. They are NOT doing the intelligent thing of dropping your price by our 20% VAT rate and then increasing it inline with Sweden's 25% VAT rate. And the same applies to places like Germany, which is 19%. I'm appalled by this. I want my net price no matter where someone is located in the world. Why on EARTH should I cover their VAT liabilities?!!
Also, I found that if I created an order to someone in the USA that person was being charged my VAT inclusive price. What the hell? They are not liable for UK VAT? So why on earth should they pay the extra 20%? I'm not a shop trying to earn a quick buck. I want my prices to be fair. All I want to earn is my VAT exclusive price and the shopify system should be catering for any VAT variances.
And what's more, when I created a manual order for a customer in Sweden for a product that cost MORE than the EUR 150 threshold Shopify was saying my price included 25% VAT. What a load of tosh, and what a ballsup! My IOSS number had been entered correctly into the site. If someone buys something that costs more than EUR 150 then it should be charging them my VAT exclusive price, and they would then cover the VAT and customs charges when the product crossed their border. By saying the price included VAT they are making that person liable for two sets of VAT.
I'm appalled they did not tell Shopify customers of these EXCEPTIONALLY inaccurate changes. Check your own store if you sell internationally. Are USA customers being charged your inclusive price?? And what about EU customers? If you have IOSS set up, are they taking your UK inclusive price and considering it the customers inclusive price even if that customers VAT rate is different to 20%? And if you don't have IOSS set up, are EU customers being charged your VAT inclusive price even though it should be net so that they pay VAT on import??
Please come back to me. And Shopify, if you are reading this - what the hell?? You have now BROKEN my store for international sales.