VAT override issue - EU

[PK2023]

Hello,

We have faced a huge issue when it comes to the tax exemption in our shopify store. We sell products (in Netherlands) that a by the law charged 9% VAT instead of the usual 21%. We have the price includes taxes and include/exclude taxes based on customers country set up and working.

We have made an tax override for this which works like a charm but we have two problems:

1) If we set a customer tax exempt (some B2B customers) the tax deducted is 21% and not 9%. This is insane that the override feature doesn't work reverse even with override (which is called override for a reason!!) We cannot grant tax exemption because of this.

2) We have an UK market and we have set up the tax override of 9% too exactly the same way as for the EU customers (for the EU it is working just like it should) but for some reason the uk market doesn't recognize the override and shows the prices with random percentages.

Could anyone help with this? It is a really a pain in the but to have features that do not work as they should.

Anyone has experienced similar issues and found a solution?

[GSOGreenwood]

Regarding point 2) - could it be that the random percentages are because the override VAT rate is being charged on the product and the full VAT rate is being charged on the shipping?

This is a known Shopify issue which doesn't align with the EU/UK law that states the VAT rate of the shipping should match the VAT rate of the product being shipped.

[Floris-de-vries]

If you want to sell B2B Tax exempted to other countries in the EU and you want customers to fill in and validate their VAT ID themselves I highly recommend trying; OO EU Tax exemption. See: https://apps.shopify.com/oo-eu-tax-exemption

[PK2023]

Hello, I already have contacted you previously on this matter and you weren't able to do that unfortunately.

[PK2023]

Replying on myself as an update on the situation:

I have product of 100€ which has category of Books (vat 9% - confirmed). When ordering the product as regular customer the taxes are correct (VAT amount is 8.26€ which is 9% of 100€).

However when I log in as a tax exempt customer, the product price is shown as 82,64€ which is VAT deduction of 21%.

HOW CAN THIS BE POSSIBLE?!?!

[GSOGreenwood]

Lazy/bad coding at a guess, and a deep unfamiliarity of EU VAT regulations that's exacerbated by a lack of testing in the market.

Presumably the function that's applied when the tax-exempt customer flag is active is only set up to deduct the main rate, and the software engineers haven't taken into account reduced VAT rate overrides that may apply to any given item.

[PK2023]

That is awful if it is this way! Like what is the use of the tax exempt feature then.