Hi @Vicoustic_Mark ,
Thank you for getting in touch. As you’re selling in EUR, I presume you are based in Europe—in which country are you and your business based in?
Merchants in the EU will likely want to have the include taxes in product prices option enabled in their tax settings, as product prices in the EU are generally inclusive of VAT rather than exclusive. This means the customer pays the advertised price at checkout rather than seeing VAT added on top of the listed price. From the screenshot you have shared, it appears that you do not have this option enabled.
Sales taxes in the EU are applied on a registration basis when using Shopify, meaning that you can add any relevant VAT numbers to your tax settings and Shopify’s automated tax system will use these to help determine what VAT should be charged on a customer’s order.
Thank you for your answer. Yes, we are selling in Europe - we are located
in Portugal and soon will sell to all European countries. We can’t include
VAT in the prices, as different countries have different VATs. We are using
Exemptify app to show prices with and without VAT.
Would you recommend doing this in a different way? Sorry to insist but as a
client would be very odd for me to have that message in the checkout. And
as we are just launching our store we want it to be perfect.
Thank you for your help,
Best Regards
Hi @Vicoustic_Mark ,
Right, thank you. If you are selling to other countries in the EU with varying rates of VAT being charged, then you can use the pricing in local currencies feature within Shopify Markets to set product prices on a country-by-country basis. This would allow for you to account for varying rates of VAT in the different EU countries you are selling to if you opted to include taxes in your product prices. That said, having looked at the Exemptify app and what it offers, I think your current setup should work fine if this is how you wish to proceed.
In terms of hiding the estimated taxes field on the checkout flow, it is not possible to disable it at this time. The amount of tax charged will be confirmed once the customer enters in their shipping address on the next page. However, I can see with your reasoning why you would like this as an option, and I will be sure to pass this feedback onto our team who develop and maintain the Shopify checkout.
Setting local prices for all EU countries may be a bit labourous and not the most effective approach for yuor store. You can limit yourself with handling the issue on taxees setup level . As long as you sell in Protugal with VAT and all your products are set as taxable it is enough for you to switch to price inclusive model and enadble dynamic pricing :
You also have to register for OSS VAT scheme in Portugal and enable taxtion for EU.
with this settings and standard Shopify Geo location app installed your Shopify store will calulate and show on the store front VAT inclusive prices. They will differ foa ll EU countries , as long as the VAT rates differ . The calculation for France for an item worth 50 EUR (VAT 23 for Portugal included would be 50/1.231.= 48.78 and for Finalnd it would be 50/1.231.24= 50.41. Price net of VAt will always be same for you.
Visit us at www.easproject.com , we can help you with setting the store and enabling Union OSS VAT special scheme solution