I know this question has been asked a number of times, however I feel there has not yet been a clear answer to this, or at least not for a B2C environment. So my question to you (other members and the Shopify team) is:
- I sell products in a B2C environment, operating from Belgium. My customer base is 50% EU, but also 50% non-EU. That is because I sell "made in EU" products which sell great overseas.
- Suppose a product costs €121 for a Belgian customer. This is €100 base price, and 21% VAT on top of that, or 21€. So the Belgian customer will pay me the full amount, I ship the products to him, and at the end of the quarter I pay 21€ to the Belgian state. Easy as that.
- However, a non-EU customer, legally, should not pay the Belgian VAT of 21%. Instead he pays 0% Belgian VAT, and then pays x% local VAT. Each country has their own tax rate. The only legal requirement to me is that I can proof that my customer lives outside the EU. However, this is purely my own obligation and the customer has nothing to do with this.
So you see, the situation is in fact very, very easy. On my website, there should be a simple note reading 'non-EU customers pay 0% tax', and then in the shopping cart, a US customer should pay 100€, while a Belgian customer will pay €121.
Now I understand Shopify has come up with certain 'solutions'. For example they say, just charge the US customer 121€ and tell him he is paying 0% tax. This is of course a complete lie, and something that a lot of customer will see through immediately.
A second solution I read online, was that it is possible to show a VAT and a non VAT price, and charge seperately to a EU or non-EU customer, however this is only for products with just 1 variant. So for example when I sell a pair of shoes in 10 different sizes, I should add 10 different products to my webshop?! I would not mind the extra work, however this would make the site look extremele unprofessional.
This is really a frustrating problem. Especially since it is such an easy to understand problem, but everywhere I read I see people explaining this in the weirdest ways possible, and Shopify coming up with the weirdest solutions.
So my question is very simple: can this be done?
I am not looking for a halfhearted answer. My time is too precious to be reading excuses or answers from the Shopify team that will lead to nowhere, or to one of the solutions above. I have already spent enough time browsing the Internet, writing to customer support, writing this topic... I just want a plain and simple answer, I think all Shopify members deserve this.
I do hope the answer will be yes. When it is, I'm happy to hear more about the how and by who, even when I need to hire an individual Shopify expert. I like using Shopify and I like the look of the themes, I would not want to switch.
Thank you for your time!
many of you experience the same problem with EU VAT handling. Since Shopify still not has a proper solution for this, I decided to set up a petiotion. Maybe we can convince Shopify together. Let's unite!
Hi has anyone got to the bottom of this yet?
Ive just entered into exporting and realised I'm not going to get very far with this vat problem.