Hello dear Shopify people,
Backstory: We work with Shopify Markets, and use product overwrites to assign the proper TAX rule for each country. In this example Dutch and German, resp. 9% and 7%.
I’ve consulted a pretty amount of documentation from Shopify:
https://help.shopify.com/nl/manual/taxes/eu/eu-tax-manage#creating-a-product-tax-override
https://help.shopify.com/nl/manual/taxes/location
and so on..
Who can explain this to me a laymen terms what happens here:
CHECKOUT:
Product A has a selling price in the Netherlands of 27,70 EUR (incl. 9% VAT) base Price = EUR 27,70/1,09 = 25,4128 [so far Shopify is correct).
Product A has a selling price in Germany of 27,19 EUR (incl. 7% VAT) base Price = EUR 25,4128 * 1.07 = 27,1916 [ but in CHECKOUT Shopify says it’s EUR 27,24. How??
BACKEND:
When making a DRAFT order:
Product A has a selling price in the Netherlands of 27,70 EUR (incl. 9% VAT) base Price = EUR 27,70/1,09 = 25,4128 [so far Shopify is correct].
Product A has a selling price in Germany of 27,19 EUR (incl. 7% VAT) base Price = EUR 25,4128 * 1.07 = 27,1916 [ DRAFT order Shopify says it’s still EUR 27,70, but they subtract it the other way around (EUR 1,81). How??
Looking forward to constructive advise