How can EU businesses get VAT exemption on Shopify checkout?

How can EU businesses get VAT exemption on Shopify checkout?

sm-sphengineeri
Shopify Partner
2 0 0

1. The lack of EU VIES VAT registration check on CHECKOUT page blocks the usage of "Buy Button" and usage of "Dynamic buy button"

 

2. The EU VIES VAT check is enabled by Sufio app, Sufia even has widget for Checkout page but ONLY for Shopify-PLUS customers. IMHO it is not fair to request EU registered shopify business owners to force to upgrade to Shopify PLUS, just to enable checkout according to EU VAT legislation.

 

More about the situation is described in https://community.shopify.com/c/shopify-discussions/vat-exemption-for-businesses-in-eu/td-p/2262976 by @Grouse 

 

Dear Shopify Support Team,

 

I am writing to bring to your attention a crucial missing feature in Shopify that is causing significant inconvenience and complications for European Union (EU) businesses engaged in B2B sales. Specifically, there is a lack of functionality to facilitate VAT exemption for customers who are registered in the VIES VAT database, which is essential for seamless EU trade.

 

Currently, EU companies registered in the VIES VAT database are unable to benefit from VAT exemption at the point of purchase on Shopify. This poses a significant challenge for businesses trying to conduct B2B transactions within the EU, as it directly affects the accuracy of taxation and the overall customer experience.

 

To address this issue effectively, I kindly request the implementation of a new field in the checkout process that verifies if the customer's VAT number is registered in the VIES VAT database. This validation process will enable the system to automatically adjust the VAT rate to 0% for eligible customers, ensuring compliance with EU regulations and streamlining the buying process for businesses involved in cross-border transactions.

 

By incorporating this feature, Shopify would not only enhance its platform's compatibility with EU e-commerce regulations but also provide an invaluable advantage to its customers by simplifying their VAT exemption procedures. This improvement would foster increased user satisfaction and promote the growth of B2B sales within the EU through the Shopify platform.

 

I understand that the development and implementation of new features require careful consideration and technical expertise. However, I strongly believe that addressing this critical issue would greatly benefit both Shopify and its EU user base, positioning the platform as a trusted and reliable solution for e-commerce operations in the European market.

 

Thank you for your attention to this matter. I look forward to hearing from you and would be happy to provide any additional information or support needed to expedite the implementation of this important feature. Your commitment to continuously improving the Shopify experience is greatly appreciated.

 

I will really appreciate if you could send that as a Feature Request to your Development Team. 

Reply 1 (1)

TeemuEAS
Shopify Partner
140 1 25

Dear Sm-Sphengineeri, 

 

B2B is a known challenge in Shopify and they are not showing any inclination to make an affordable remedy which would allow for simultaneous sale of B2C and B2B. 

 

There are some solutions out there which take over the checkout, allowing for a VAT check. We do not recommend going that path under any circumstances, however. First of all Shopify checkout is optimised, you do NOT want any extra stages there. Second, tampering with checkout will make you loose your sleep. Just don't touch it, asking for trouble. 

 

We recommend Shopify, despite this. The simplest, reliable workaround is to have 2 sites with registration required for the B2B site. Then you can easily use the VIES checkup and have the whole site VAT 0%. 

 

If you need assistance, don't hesitate to contact us at EAS Project. We are happy to share our expertise. Plus we have the leading B2C cross-border automation you really should be using 🙂 

https://apps.shopify.com/eas-eu-compliance

 

 

EAS EU & UK Compliance app is a fully automated European VAT solution for Shopify.