Category: Shopify

Shopify VAT exemption

If you run an international online store, Shopify helps you preset tax rates by country. However, the Shopify tax system has limits and a special setting is required for certain special rules. An example of this would be the sale of medical products, which are taxed at a lower rate or are completely tax-exempt in some EU countries. Full tax exemption in the UK for people with disabilities is also often difficult for store operators to implement, as Shopify itself can only offer a limited solution to this problem. What is possible? Shopify offers some integrated tools that allow store operators to implement these special rules such as tax reduction and VAT exemption. You can find out which tools these are here. Tax overrides for certain products in certain countries Shopify allows you to set up a VAT exemption or VAT override for certain products in certain sales regions of your Shopify store. To set this up, you need to follow these steps: 1. open Shopify settings and select tax settings Open your Shopify store in admin mode (my-store.myshopify.com/admin). At the bottom left of your store, you should see the option to access your store's settings. Now open the tax settings on the left-hand side. 2. select the tax region You should now see an overview of all the tax regions that you have set up in your Shopify store. Select the region for which you want to set up the VAT override or VAT exemption. 4. activate and configure the tax override Scroll to the very bottom of the page that has now opened until you see the Tax override item. Here you can now set up two prescription types, the shipping costs override or the product tax override, by clicking on the link for the respective field. You then have the option of setting up individual collections in your store for a specific country. It is important to note that only manual collections can be used for product tax overrides and not automatic collections based on filters. In the example, we have set up a tax reduction for Belgium and the Netherlands, as they have a reduced VAT rate for certain products. It is best to ask your tax advisor or do your own internet research on the products concerned. For example here. If you would like to mark a product as tax-free in a country, simply enter 0% in the tax rate field.