VAT Collected by Vendor, but not Shopify. Help!

PoshTide
Tourist
11 0 1

My POD vendor charged me VAT when order was routed. I have tax settings within Shopify set up to collect VAT from UK and European Union. I have product settings set to collect taxes. My German customer was not charged taxes at checkout. What went wrong? How do I fix this so that 20% of my profit doesn't disappear? Thanks!

Replies 4 (4)
r8r
Shopify Expert
2350 305 834

Hi,

can you please provide some more information?

  • Where are you located?
  • Where ist the customer located? (Is this problem restricted to Germany?)
  • Who is your POD vendor – where is he located?
  • What products are you selling?
  • What's your approximate annual sales volume in Germany?
  • etc.

Mario

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Studio Mitte
PoshTide
Tourist
11 0 1
Thank you for your response,

I am located in New Jersey, USA. This issue was with Printful.The products ordered are fulfilled in Latvia, although the billing address for Printful company is located in North Carolina. See the below screen grab of the Order Slip with the VAT charge. The other images are screen grabs from the Shopify site which show the neck gator and tee shirt. I have checked the box to charge tax and I have checked the box to collect tax from the European Union within the Tax Settings of Shopify. As you can see, a big % of the earnings was eaten. I would like to make sure I can fix this for any future orders and couldn’t find a specific video or write up to solve it.

My annual sales to Germany are still pitiful. I need to do more marketing 😭

Thanks in advance,
Stacey Posnett
Posh Tide


r8r
Shopify Expert
2350 305 834

Phew … that is pretty messy … 😉
We're already happy, being able to untangle all the tax-issues within the EU – selling from a third party country (US) to an EU country (Germany) fulfilled from another EU country (Latvia) from a company based in another third party country (US) … makes my head spin, just trying to step through that.

Your problem may be fixed by unchecking Show all prices with tax included, as I could imagine, that Shopify shows a fixed price that includes taxes, no matter how much these are, when this option is checked; HOWEVER in the EU is's unlawful to mark consumer-prices without taxes.

So actually, I would love to hear from a Shopify staff member what the correct way of checking the boxes for this case ist. @Nick maybe?

PS: I think there should've been screenshots with your post, right?

★ Ja, man kann mich buchen; schreib mir eine Nachricht!
★ Hinterlass gerne ein Like und markiere meine Antwort gegebenenfalls als Lösung. Ich freue ich mich immer über eine Spende an die (Kinder)krebshilfe oder eine kleine Aufmerksamkeit.
Studio Mitte
PoshTide
Tourist
11 0 1

Yes, there were screen shots with my post. Here they are:

The first is an image of Printful, who has charged me VAT-

Screen Shot 2020-12-09 at 3.54.31 PM.png

The rest are from the Shopify platform-

Screen Shot 2020-12-09 at 3.55.18 PM.png

Screen Shot 2020-12-09 at 3.55.44 PM.png

Screen Shot 2020-12-09 at 3.56.08 PM.png

Screen Shot 2020-12-09 at 3.56.34 PM.png

I would love double confirmation before I go ahead and uncheck all "Charge tax on this variant" through out my shop.

 

Thanks again!

Stacey Posnett

AKA Posh Tide