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While testing Shopify Tax, we were glad to see Shopify now recognizes the Canary Islands’ VAT exemptions. However, we’ve discovered an issue: the tax exemption doesn’t apply to certain postal codes.
Specifically, the exemption doesn’t work for 35000 and 38000, though it does for 35001 and 38001. It seems the rule is set to apply to postal codes greater than 35000, instead of greater than or equal to 35000.
These postal codes are valid and cover several towns:
Find below screenshots of exactly the same checkout (same cart, customer, address…), the first with postal code 38001 (no VAT) and the second with postal code 38000 (with VAT)
