Shopify & VAT / GST

This help page is for Brightpearl accounts in the UK, Australia and other VAT or GST based tax schemes. 

VAT on downloaded products

When products are downloaded into Brightpearl, we set them to be T9 if the Shopify item is non taxable, and use the company default tax code (usually T20) if the Shopify item is taxable.

The prices imported into Brightpearl depend on whether you have set your Shopify store to “prices include tax” or not at Settings > Tax. If your Shopify store is showing prices including tax and the item is taxable, then we’ll take 20% off the amount in order to store the tax-exclusive price in Brightpearl. If your Brightpearl price list is also set to show prices including tax (prices will be underlined), then you’ll see the same tax-inclusive price in both systems. If your Shopify store is not set to show prices including tax, then we’ll just import the Shopify price as the net price in Brightpearl.

The Brightpearl setting for “show prices including tax” on the price list does not affect the prices when downloading in any way.

VAT on downloaded orders

The tax code(s) and rates applied to the order are defined by the following rules:

Rule 1: Use the customer tax code

This rule is only applicable where the customer already exists in Brightpearl and has been set with a specific code. New customers created as a result of Shopify order downloads will have no code set against them and so rule 2 will be applied

Rule 2: Where the customer has no tax code, use the tax code applicable to the billing address country

This rule is applied by tax zones in Brightpearl. Each country can be assigned to a tax zone, and the tax zone is set to apply a specific tax code.

Sales to the rest of Europe will require the T4 tax code so that a zero VAT rate is applied and the sales figures are displays in the correct boxes on the VAT return.

Ensure no tax code is set against the UK tax zone so that rule 3 is always applied.

Rule 3: If the country has no associated tax code, use the product code

In the UK tax is applied based on the category of product. Setting no tax code against the UK tax zone ensure this rule will be applied for customers purchasing in the UK.