Our VAT Tax setting can be used as a workaround to facilitate different tax rates between your wholesale & retail customer groups. Below are the steps for this process.
- Set all products that you wish to charge taxes on for either customer group to 'Charge taxes on this product'.
- In Shopify, establish the retail tax rate that you wish to charge.
- Mark all retail customer accounts as 'Charge taxes', this way the Shopify tax rate is charged on their orders.
- Mark all wholesale customers as 'tax exempt'.
- In the 'Settings' section of our app, establish a wholesale tax rate via the 'VAT' tax setting. Save the page so that this setting is locked in.
Your wholesale customers will now be charged whichever tax rate you've applied to the 'VAT' setting for their front-end checkouts, while retail customers will be charged whichever rate you established within Shopify.
The one downside to this workaround is that your wholesale customer's tax rate will only ever be labelled 'VAT Tax', as Shopify does not allow us to adjust this title. You can use any of our custom messaging areas to warn your wholesale customers of this up front, which should cut down on confusion. You can set a custom message above the wholesale login, signup and customer account pages via the 'Customers' settings area, as well as above the Quick Order Form via it's settings section.
Note: The Wholesale VAT rate will only be applied to front end orders; any manually created orders will need to have a tax rate manually added on, either via the 'Tax' custom line or the 'Custom line item' setting.
Note: If you need to charge multiple tax rates to either customer group, you're going to need to fold the multiple rates into a single, stacked charge. For example, if you need to charge two rates of 10% and 3% respectively, then you would want to set the rate up as 13% via adding those two together.