Since the implementation of OSS in the EU today, we are having issues with how our end prices are being calculated in our online shop. Our tax settings are:
The issue right now is that the end price changes depending on the charged VAT rate. We are registered in Germany with 19% VAT. If we sell to another EU country now, the end price changes instead of adjusting the VAT amount to the sale price (a EU sale of eg. €99 should always be €99, regardless of 19% VAT or 20% VAT or 25% VAT, only the VAT part of the total price would increase if the rate is higher than our 19%). So if we have a french customer right now (France has 20% VAT rate), he/she pays slightly more than our German customers. Has anyone else experienced this issue, and if so, did you manage to properly solve this? We have contacted Shopify support, and they couldn't help us and said our tax settings are correct.
Hopeful for a resolution as having a different end price than listing price is illegal in the EU.
So, I have managed to figure out what how the price is calculated. Please forward this information to the developers asap.
Here is an example:
Regular price €99. Sale price €69,30. This it how it should be, and how it’s displayed in the shop. But when a customer from another EU country with another VAT rate wants to buy this, Shopify calculates the price like this:
99 - 19% German VAT = 83,19
83,19 is then used to calculate the sale price without VAT, in this case 83,19 * 0,7 = 58,24.
Then French VAT is added the price instead, like this:
58,24 + 20% French VAT = 69,89
So on the sale (excluding shipping), VAT of 11,65 has been charged to the customer, but the correct VAT charged to the customer should be 20% of 69,30, which equals 11,55.
So the issue with the incorrect prices are due to how Shopify calculates the prices. I tried with a regular priced item as well, and same applies:
Price in the shop = 189 This is what German customers pays, and what everyone in the EU should pay (shipping excluded). However same thing happens, again the French example:
189 - 19% = 158,82
158,82 + 20% = 190,59
Same problem over here.
Shopify has no clue how to handle VAT and never shown any interest in helping EU sellers with their LEGAL requirements.
I have another issue with my imported orders from marketplaces, they are all charged 21%...
Been going back and forth for a week now... let me know if you have an answer.
We have had no luck so far, Shopify staff doesn't even seem to understand the problem. They just thinks it's fine that non EU customers pay the same price as there is no VAT in this price, totally ignoring the fact that they should pay less because they do have to pay taxes on import. Shopify is laughably bad at all EU tax settings, and this is costing them a lot of money on missed sales from their EU merchants.
So we are now 3 weeks in after this issue appeared, and no fix in sight from Shopify. Did anyone hear anything from Shopify regarding this, or did you find a workaround? We are just walking in circles, chatting with different support members and getting almost identical replies which are;
- Cannot confirm whether or not a fix is coming, nor when.
- Solve this issue with custom coding or apps, both not possible for us since we have a custom theme and cannot access checkout coding as we are not a plus merchant.
yes legally the correct price including the tax should be shown so shopify set up in not even compliant. it worked when you had one tax rate applied, but now that each country has its own shopify did not consider and are clueless.
maybe the new marketplace implementation will solve it
Hi there, I came across the same problem just now and there seems to be still no solution, or did you find a way to solve it in the meantime and can share with me? Thanks! Inga
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