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Hello!
I would need help with the following: I would need to set up the tax settings so that a VAT of 14% would be charged on ticket sales regardless of the customers' location, as the VAT should be charged to the country where the event is held. I tried to set up a tax exeption rule so that I would have added an exeption rule on all countries separately by product category. However, setting this up for USA, Canada, Australia and the UK is not possible, because we are not required to pay taxes to these countries and we are not registering to collect taxes on behalf of these countries.
I have also contacted Shopify support about this but they didn't have a solution available at least straight away.
Any help would be greatly appreciated!
@janmar1 wrote:Hello!
I would need help with the following: I would need to set up the tax settings so that a VAT of 14% would be charged on ticket sales regardless of the customers' location, as the VAT should be charged to the country where the event is held. I tried to set up a tax exeption rule so that I would have added an exeption rule on all countries separately by product category. However, setting this up for USA, Canada, Australia and the UK is not possible, because we are not required to pay taxes to these countries and we are not registering to collect taxes on behalf of these countries.
I have also contacted Shopify support about this but they didn't have a solution available at least straight away.
Any help would be greatly appreciated!
Shopify's default tax settings typically apply taxes based on the customer's location, which conflicts with charging VAT based on your event's country. While manual tax overrides per country (setting 14% for the event country and 0% for others like USA, Canada, UK, Australia where you're not required to collect) are a possible but tedious workaround, the most robust solution for "place of supply" rules for event tickets is often a specialized third-party tax app. Apps like Avalara can provide more control and automation for complex international tax scenarios. You must ensure you're registered for VAT in the event's country to legally charge and remit the tax.
I'm replying here myself so that this might help other people in the future:
The solution was to go to Settings->Locations and set up a new location for ticket sales, that would be in the country the event is held at. Then in Settings -> Shipping and Delivery you need to set the location so that only local pickup is available. Then you need to set the product for the ticket as a physical product and then set the location selected before for tickets as the product's fulfilment location. By doing this, Shopify will charge local tax for the ticket, regardless of the location of the customer.