VAT Tax Setup Guide

Domestic VAT

DISCLAIMER

The following is meant to provide generic assistance with calculating taxes for wholesale orders processed through Wholesale Gorilla, and does not purport to be a complete solution for tax compliance. Tax rules are complex and change frequently, you are responsible for proper compliance with all tax laws as they relate to the operation of your business. Please read the following carefully.

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Most stores in the EU do not charge VAT on orders sent outside their home country, while domestic orders are required to have VAT added to the order subtotal. Follow these steps to add VAT as an additional line item to orders shipping to addresses inside your home country. Your home country can be set in your Shopify admin under Settings.

Important: Only follow these steps if the retail price of your products includes VAT.

1. Set all of your wholesale discounts so that the wholesale price excludes VAT. 

2. Mark all wholesale customers as tax exempt. This guide will explain the process for doing so.
   

3. Ensure that your products are set as taxable, via the 'Charge tax on this product' box being ticked on the appropriate listings. 
   

4. Add your domestic VAT rate in Wholesale Gorilla. Open Wholesale Gorilla and click the Settings tab. Enter the VAT rate for domestic wholesale orders, and click 'Save' at the bottom of the settings page.
   

Now any wholesale orders shipping to your home country will have the VAT added as a line item to the order. Here is a screenshot of the tax line added to a Net Terms order: 

 

 

Note: The VAT tax setting will only be applied to front-end checkout orders; any manually made orders via the backend of your site will need to have VAT taxes manually calculated & added on. 

 

 

Can I customize the 'VAT' label/wording?

Unfortunately, Shopify does not allow us to make any additional customization to the tax settings at this time. If they do open their settings up to allow us to do so, we happily will; otherwise, we're stuck per this limitation with only offering the title of 'VAT' for such taxes. 

Why does the Taxes line say $0.00?

For some reason Shopify does not allow apps to add a custom tax line with the API we use. Unfortunately they don’t seem to have any intention of changing this, so for now we have to add VAT as a line item to the order.