After the new EU rules with the “One-Stop Shop registration Shipping - destination VAT rates apply” and we then check the box with “Include or exclude tax based on your customer’s country” in the tax settings, all our prices are different from country to country in EU depending on the countrys VAT rate, and all orders outside EU have the VAT deducted. As Shopify, for some super weird reason, can not differ VAT settings from EU orders and NON-EU orders.
Example on a product:
Default product price: 600€
Price on product in Denmark: 600€ (since our shop is based in Denmark)
Price on product in Germany: 575,8€ (since the German VAT is lower than in Denmark)
Price on product in Japan: 480€ (since it is non-EU and VAT free)
The price example above is only when I have clicked “Include or exclude tax based on your customer’s country” in the tax settings.
In the example above, I want the price to be the same in Denmark as in Germany, but exclude the VAT in Japan .
Is this not possible with Shopify?
I found one workaround that we’ll test a little: Create a discount code (e.g call it Taxfree). In case of Norway VAT is 25% so discount should be 20% (100/1,25=80, so 100-80=20 is 20% of 100). Then I used this app https://apps.shopify.com/automatic-discount-rules
Then I set up the app to automatically apply the discount created based on visitor IP Geolocation (not ideal, in case of customer using VPN; just pay attention and void discount code/order in case someone from homecountry tries to cheat their way into a discount).
Oh, and of course you need to select in Shopify settings that customers abroad should not pay tax.
If you just discount the order the VAT amount accounting will just see that as a discount. VAT will still apply to the order on your end. Please correct me if I’m wrong.