How to remove domestic VAT from products, when client is located abroad? How to set up negative taxes for non-domestic countries?
Prices of my products are shown on my store inclusive of Swiss taxes (my business and main clientele are based in Switzerland and everyone appreciates seeing the final price straight away, without hidden taxes that come up at checkout).
I therefore selected "All taxes are included in my prices" and updated 7.7% of VAT for Switzerland. And this is fine.
Now, I am shipping also abroad, i.e. in the UE. Let's assume that a client located in France wants to purchase an item that costs 100 Swiss Francs. As the item needs to ship to France, Swiss VAT 7.7% should be removed, therefore a French client should pay 100 - 7.7 = 92.3 Swiss Francs. Client will be charged local VAT separately by French customs.
My problem is that Shopify won't let me set up a -7.7% tax rate for any non-Swiss country I am shipping to, and these negative taxes are crucial for my website.
In fact, who wants to purchase a product on which a double tax (Swiss 7.7% + French 20%) will be applied? Noone!
I have tried with Taxes Overrides but also then, it is impossible to add a negative value.
Please is someone out there able to help me out with this crucial issue?
Looking forward to your replies guys!!
I'm using these negative tax rates and they are crucial to the way my site works.
We need to show tax inclusive prices on our website. (The tax is GST, a New Zealand tax.) But this tax needs to be removed for overseas buyers. I do this using negative tax rates, and it works perfectly.