Why is my Irish store still applying the old VAT rate?

[Diana_g]

Hi there,

We run a Shopify store based in Ireland. The Irish VAT @23% was reduced to VAT @21%.

The new Tax Registration Feature calculates VAT wrong. It still applies VAT @23% to orders.

Please, anyone, help here as we may get in trouble!!!

Diana

[Nick · Accepted solution]

Hi @Diana_g ,

Nick here from Shopify. Great question!

I am also based in Ireland and have a store so thought the same as yourself. From experience and double-checking with the tax team, for me, I needed to add the Irish VAT number to start charging VAT and then in my tax settings click on European Union and set it up. The tax team updated it on the day it changed which was September 1st. Could you double-check your tax settings (Settings > Taxes > Tax Regions) are set to collect taxes (VAT) and let me know? If they are and this is still persisting, please let me know in a reply here. 

Shopify also has a helpful guide for setting up taxes for EU stores which you might find useful that you can read here. 

Cheers, Nick

[Diana_g]

Hi Nick,

thank you so much for your input.

Done as suggested and looks like all ok now. It took them around 24 hours to fix it and I had to disable collect VAT at first, save the changes and then go back again to collecting VAT.

Closed the store for the day... lots of caffeine and on a maintenance mode 🙂

Thank you once again,

Diana

[Nick]

Anytime, glad to help and that it's all working for you now. Sometimes it can just take some time! 

[TonyGammell]

Hi Nick, apologies for bringing up a zombie thread. I'm also from Ireland and could do with some tax help as I'm a little lost in terms of what I'm supposed to do. I Iive in Ireland and my business is based in Ireland. However, I will serve my UK customers using a UK manufacturer. Could you help with how I set this up correctly?

[Nick]

Hi @TonyGammell,

The best advice is to definitely check with your local tax office or professional accountant to see which taxes you need to charge, especially with the UK as Brexit might have changed some aspects of that. 

What I can help you with is how to set up your taxes within Shopify as a store operating in the EU. Shopify has a guide here going through all the information you need to set up taxes in the EU. Because your store is based in Ireland, this would apply for you and your store. I hope this helps, but I'm here if you have any other questions as I know taxes can be difficult even on the best of days! 

[Pinnyup]

You can make sure everything is working after with this tool, it has a variable rate VAT input so you can check it.