{"id":1501,"date":"2026-05-01T00:01:21","date_gmt":"2026-05-01T08:01:21","guid":{"rendered":"https:\/\/wholesalehelper.io\/blog\/?p=1501"},"modified":"2026-05-01T00:01:24","modified_gmt":"2026-05-01T08:01:24","slug":"shopify-vat-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/wholesalehelper.io\/blog\/shopify-vat-all-you-need-to-know\/","title":{"rendered":"Shopify VAT &#8211;\u00a0 For US, EU, UK &amp; non-EU Businesses","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p class=\"has-large-font-size\"><strong>Key Takeaways<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>VAT stands for Value Added Tax. It is a consumption tax charged in many countries, including the UK and EU member states.<\/li>\n\n\n\n<li>You are not automatically Shopify VAT compliant. You need to add the right tax registrations and review your Shopify tax settings.<\/li>\n\n\n\n<li>If you sell in the EU, you may need a local VAT registration, OSS registration, IOSS registration, or a mix depending on where you are based and where you ship.<\/li>\n\n\n\n<li>Shopify supports EU tax setup options such as local VAT registration, OSS registration, and micro-business VAT registration.<\/li>\n\n\n\n<li>For UK sales, VAT treatment can depend on order value, business location, customer location, and whether goods are imported.<\/li>\n\n\n\n<li>Shopify can calculate duties and import taxes at checkout for eligible stores, but you need to configure your duties, import tax, and tax registration settings properly.<\/li>\n\n\n\n<li>For B2B sales in the EU\/UK, VAT number validation and reverse charge rules can matter.<\/li>\n\n\n\n<li>Shopify Tax in the EU and UK supports automated calculations, VAT invoices, and threshold tracking.<\/li>\n\n\n\n<li>Always test checkout for your main buyer locations before going live with VAT settings.<\/li>\n<\/ul>\n\n\n\n<p>Selling internationally on Shopify is exciting, but VAT can quickly become confusing.<\/p>\n\n\n\n<p>VAT rules are different depending on where your business is located, where your customers are located, whether you sell B2C or B2B, and whether the order is domestic or cross-border.<\/p>\n\n\n\n<p>In this guide, we\u2019ll explain what VAT means, when Shopify merchants may need to collect VAT, how VAT works for US, EU, UK, and non-EU businesses, and what settings you should review inside Shopify.<\/p>\n\n\n\n<p>This guide is for general understanding only. VAT rules can change and may vary by country, product type, and business setup, so it is always best to confirm your tax obligations with an accountant or VAT specialist.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='what-is-shopify-vat'  id=\"boomdevs_1\" class=\"wp-block-heading\" id=\"0-what-is-shopify-vat-and-who-does-it-apply-to-\"><strong>What is Shopify VAT?<\/strong><\/h2>\n\n\n\n<p>To start with the basics, Shopify VAT (Value-Added Tax) is a tax levied on the sale of products and services from your Shopify store, which the buyer indirectly pays. This means tha<strong>t Shopify sellers need to collect VAT from their customers at the time of sale (in checkout)<\/strong> and remit it to the respective tax authorities in their countries.&nbsp;<\/p>\n\n\n\n<p>When setting up your Shopify store, it is essential to consider whether you need to charge <strong>VAT<\/strong> on your products and services if your buyers are from the EU member countries or the UK.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='vat-vs-sales-tax'  id=\"boomdevs_2\" class=\"wp-block-heading\">VAT vs Sales Tax<\/h2>\n\n\n\n<p>VAT and sales tax are both consumption taxes, but they work differently.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Point<\/th><th>VAT<\/th><th>Sales tax<\/th><\/tr><\/thead><tbody><tr><td>Common regions<\/td><td>UK, EU, and many other countries<\/td><td>United States<\/td><\/tr><tr><td>Charged on<\/td><td>Goods and services<\/td><td>Usually retail sales<\/td><\/tr><tr><td>Applied across supply chain<\/td><td>Yes<\/td><td>Usually at final sale<\/td><\/tr><tr><td>Invoice requirements<\/td><td>Often more detailed<\/td><td>Varies by state<\/td><\/tr><tr><td>B2B treatment<\/td><td>Reverse charge may apply in some cases<\/td><td>Exemption certificates may apply<\/td><\/tr><tr><td>Shopify setup<\/td><td>VAT registrations, OSS\/IOSS, regional settings<\/td><td>State tax registrations and nexus settings<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>If you sell only inside the US, your main concern may be sales tax. If you sell to the UK or EU, VAT becomes important.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='when-and-when-not-to-register-for-vat'  id=\"boomdevs_3\" class=\"wp-block-heading\" id=\"1-when-and-when-not-to-register-for-vat-\"><strong>When and when not to register for VAT?<\/strong><\/h2>\n\n\n\n<p><strong>Registering for VAT and charging it on your products is not a necessary step for every Shopify seller.<\/strong> Before you jump into enabling tax settings in Shopify, make sure to check if you fall under the criteria of mandatory VAT registration. Some common factors that determine whether or not you need to register are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Type of product:<\/strong> Not all types of products are taxed in all countries. Some are exempt from VAT.<\/li>\n\n\n\n<li><strong>Location and threshold: <\/strong>Each country has its own minimum sales amount, after which you need to register for VAT. For example, the UK&#8217;s threshold limit is <strong>\u00a390,000<\/strong> in a rolling <strong>12-month period.<\/strong><\/li>\n\n\n\n<li><strong>Cross-border trade: <\/strong>If you sell products to customers in other EU countries, their respective thresholds also apply. <\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='vat-for-us-eu-non-eu-and-uk-based-shopify-stores'  id=\"boomdevs_4\" class=\"wp-block-heading\" id=\"2-vat-for-us-eu-non-eu-and-uk-based-shopify-stores-\"><strong>VAT for US, EU, non-EU and UK-based Shopify stores<\/strong><\/h2>\n\n\n\n<p>VAT is charged differently for EU-, non-EU-, and UK-based companies.<br><br>Here are some use cases that&#8217;ll give you a better idea &#8211;<\/p>\n\n\n\n<h3 id='1-for-shopify-businesses-in-the-us'  id=\"boomdevs_5\" class=\"wp-block-heading\" id=\"3-1-for-shopify-businesses-in-the-us-\"><strong>1. For Shopify businesses in the US<\/strong><\/h3>\n\n\n\n<h4 id='a-us-based-shopify-business-selling-products-within-the-us'  id=\"boomdevs_6\" class=\"wp-block-heading\" id=\"4-a-us-based-shopify-business-selling-products-within-the-us-\"><strong>A US-based Shopify business selling products within the US<\/strong><\/h4>\n\n\n\n<p>If you&#8217;re a US-based Shopify business, and all your buyers are from the United States, then you won&#8217;t need to collect VAT.<\/p>\n\n\n\n<h4 id='a-us-based-shopify-business-selling-products-to-customers-from-eu-member-countries'  id=\"boomdevs_7\" class=\"wp-block-heading\" id=\"5-a-us-based-shopify-business-selling-products-to-customers-from-eu-member-countries-\"><strong>A US-based Shopify business selling products to customers from EU member countries<\/strong><\/h4>\n\n\n\n<p>In the European Union (EU),<a href=\"https:\/\/wise.com\/gb\/vat\/europe\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> each member country has its own VAT (Value Added Tax) rates<\/a> and regulations. Therefore, the VAT rate you should collect depends on the specific country to which you are selling your products. <\/p>\n\n\n\n<h4 id='a-us-based-shopify-business-selling-products-to-customers-from-the-uk'  id=\"boomdevs_8\" class=\"wp-block-heading\" id=\"6-a-us-based-shopify-business-selling-products-to-customers-from-the-uk-\"><strong>A US-based Shopify business selling products to customers from the UK<\/strong><\/h4>\n\n\n\n<p>If you&#8217;re a US-based Shopify business selling products to UK citizens, then you&#8217;ll need to charge VAT at the <a href=\"https:\/\/wise.com\/gb\/vat\/\" target=\"_blank\" rel=\"noreferrer noopener\">UK&#8217;s standard rate, currently set at 20%<\/a>.<\/p>\n\n\n\n<h3 id='2-for-shopify-businesses-in-the-eu-member-countries'  id=\"boomdevs_9\" class=\"wp-block-heading\" id=\"7-2-for-shopify-businesses-in-the-eu-member-countries-\"><strong>2. For Shopify businesses in the EU member countries<\/strong><\/h3>\n\n\n\n<h4 id='an-eu-based-business-selling-products-within-the-eu-member-countries'  id=\"boomdevs_10\" class=\"wp-block-heading\" id=\"8-an-eu-based-business-selling-products-within-the-eu-member-countries-\"><strong>An EU-based business selling products within the EU member countries<\/strong><\/h4>\n\n\n\n<p>If your Shopify business is based in the EU (member states), you need to charge VAT as per the standard rate of your country.<\/p>\n\n\n\n<h4 id='an-eu-based-shopify-business-selling-products-to-customers-from-non-eu-member-countries'  id=\"boomdevs_11\" class=\"wp-block-heading\" id=\"9-an-eu-based-shopify-business-selling-products-to-customers-from-non-eu-member-countries-\"><strong>An EU-based Shopify business selling products to customers from non-EU member countries<\/strong><\/h4>\n\n\n\n<p>When an EU-based Shopify business sells products to customers in non-EU member countries, the VAT doesn&#8217;t come into play for those sales. Instead, sellers must collect the tax as per the import laws and regulations of the destination country.&nbsp;<\/p>\n\n\n\n<h4 id='an-eu-based-shopify-business-selling-products-to-customers-from-the-uk'  id=\"boomdevs_12\" class=\"wp-block-heading\" id=\"10-an-eu-based-shopify-business-selling-products-to-customers-from-the-uk-\"><strong>An EU-based Shopify business selling products to customers from the UK<\/strong><\/h4>\n\n\n\n<p>If your Shopify business is based in the EU and sells products to customers in the UK, then you&#8217;ll need to charge VAT at the UK&#8217;s standard rate.<\/p>\n\n\n\n<h3 id='3-for-shopify-businesses-in-the-uk'  id=\"boomdevs_13\" class=\"wp-block-heading\" id=\"11-3-for-shopify-businesses-in-the-uk-\"><strong>3. For Shopify businesses in the UK<\/strong><\/h3>\n\n\n\n<h4 id='a-uk-based-shopify-business-selling-products-within-the-uk'  id=\"boomdevs_14\" class=\"wp-block-heading\" id=\"12-a-uk-based-shopify-business-selling-products-within-the-uk-\"><strong>A UK-based Shopify business selling products within the UK<\/strong><\/h4>\n\n\n\n<p>If you&#8217;re a business established in the UK and you&#8217;re making taxable supplies of products or services, you need to charge VAT on those sales at the standard rate.<\/p>\n\n\n\n<h4 id='a-uk-based-shopify-business-selling-products-to-customers-from-eu-member-countries'  id=\"boomdevs_15\" class=\"wp-block-heading\" id=\"13-a-uk-based-shopify-business-selling-products-to-customers-from-eu-member-countries-\"><strong>A UK-based Shopify business selling products to customers from EU member countries<\/strong><\/h4>\n\n\n\n<p>If your UK-based Shopify business sells products to customers in any EU member country, you&#8217;ll need to charge VAT at the standard rate of that particular country. For example, if you&#8217;re selling a product worth <strong>\u20ac100 to a customer in France, then you&#8217;ll also need to collect 20% VAT (\u20ac20)<\/strong> from them as per French tax laws.<\/p>\n\n\n\n<h4 id='a-uk-based-shopify-business-selling-products-to-customers-from-non-eu-member-countries'  id=\"boomdevs_16\" class=\"wp-block-heading\" id=\"14-a-uk-based-shopify-business-selling-products-to-customers-from-non-eu-member-countries-\"><strong>A UK-based Shopify business selling products to customers from non-EU member countries<\/strong><\/h4>\n\n\n\n<p>When a UK-based Shopify business sells products to customers from non-EU member countries, VAT does not apply to those sales. The sellers need to collect taxes as per the destination country&#8217;s import laws and regulations.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='charging-shopify-vat-for-b2b-vs-b2c-customers'  id=\"boomdevs_17\" class=\"wp-block-heading\" id=\"15-charging-shopify-vat-for-b2b-vs-b2c-customers-\"><strong>Charging Shopify VAT for B2B vs B2C customers<\/strong><\/h2>\n\n\n\n<p>The buyer-seller scenario plays a significant role in <strong>VAT on Shopify<\/strong>. If you&#8217;re selling to both B2B and DTC on your store, then there might be differences in the VAT that you&#8217;ll charge on your products &#8211;<\/p>\n\n\n\n<h3 id='i-selling-to-b2b-customers'  id=\"boomdevs_18\" class=\"wp-block-heading\" id=\"16-i-selling-to-b2b-customers-\"><strong>I. Selling to B2B customers<\/strong><\/h3>\n\n\n\n<p><strong>If you&#8217;re selling your products to your <a href=\"https:\/\/wholesalehelper.io\/blog\/shopify-b2b\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/wholesalehelper.io\/blog\/shopify-b2b\/\" rel=\"noreferrer noopener\">B2B\/wholesale customers<\/a><\/strong>, you don&#8217;t need to collect VAT from them if they provide their valid VAT number during checkout.<\/p>\n\n\n\n<p>Just make sure that your B2B customers have a valid VAT number so that they fall under the r<a href=\"https:\/\/quaderno.io\/blog\/how-does-the-reverse-charge-mechanism-work\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">everse charge mechanism in B2B transactions.<\/a><\/p>\n\n\n\n<p>Don&#8217;t worry, we will show you how to set up tax exemptions for your EU-based customers later in this article.<\/p>\n\n\n\n<h3 id='ii-selling-to-b2c-customers'  id=\"boomdevs_19\" class=\"wp-block-heading\" id=\"17-ii-selling-to-b2c-customers-\"><strong>II. Selling to B2C customers<\/strong><\/h3>\n\n\n\n<p><strong>If you&#8217;re selling your products to B2C customers<\/strong>, then you will have to <strong>collect VAT from them<\/strong> as per the tax rates applicable <strong>in their region<\/strong>. Later, you can remit it to the respective tax authorities.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='how-to-set-up-vat-for-your-shopify-store'  id=\"boomdevs_20\" class=\"wp-block-heading\" id=\"18-how-to-set-up-vat-for-your-shopify-store-\"><strong>How to set up VAT for your Shopify store?<\/strong><\/h2>\n\n\n\n<p>By now, you should have a basic idea of how VAT works for your type of business. The next step is to set it up inside Shopify based on where you sell, where your business is registered, and how you want taxes to appear to customers.<\/p>\n\n\n\n<p>Before changing these settings, make sure you know where you need to collect VAT. Shopify can help calculate taxes, but you still need the correct VAT registration and tax setup.<\/p>\n\n\n\n<p class=\"has-large-font-size\"><strong>A. Check that your products are set to charge tax<\/strong><\/p>\n\n\n\n<p>Before setting up VAT regions, first make sure your products and variants are marked as taxable.<\/p>\n\n\n\n<p>From your Shopify admin, go to&nbsp;<strong>Settings &gt; Taxes and duties<\/strong>.<\/p>\n\n\n\n<p>If some products or variants are not set to charge taxes, Shopify may show a warning like:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>You are not charging taxes on some product variants.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"675\" src=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM-1024x675.png\" alt=\"screenshot showing shopify's notification when you are not charging tax on certain products\" class=\"wp-image-5374\" srcset=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM-1024x675.png 1024w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM-300x198.png 300w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM-768x506.png 768w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM-1536x1012.png 1536w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM-370x245.png 370w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.08.00-PM.png 1630w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div><\/blockquote>\n\n\n\n<p>Click&nbsp;<strong>Edit variants<\/strong>&nbsp;and check the products or variants that should charge tax.<\/p>\n\n\n\n<p>You can also check this from the product page. Open the product in Shopify admin and make sure&nbsp;<strong>Charge tax on this product<\/strong>&nbsp;is selected.<\/p>\n\n\n\n<p>This is important because Shopify will not calculate VAT correctly for products that are not marked as taxable.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-large-font-size\"><strong>B. Add the country or region where you want to collect VAT<\/strong><\/p>\n\n\n\n<p>In the current Shopify admin, VAT and tax collection are managed from&nbsp;<strong>Settings &gt; Taxes and duties<\/strong>.<\/p>\n\n\n\n<p>On this page, look for the&nbsp;<strong>Tax regions<\/strong>&nbsp;section.<\/p>\n\n\n\n<p>This section shows the countries or regions where your customers will pay tax and where you will collect and remit tax. In the current Shopify UI, Shopify also mentions that you may need to create a&nbsp;<strong>shipping zone<\/strong>&nbsp;to add a new tax region.<\/p>\n\n\n\n<p>To check or add a VAT region:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to\u00a0<strong>Settings > Taxes and duties<\/strong>.<\/li>\n\n\n\n<li>Scroll to\u00a0<strong>Tax regions<\/strong>.<\/li>\n\n\n\n<li>Check whether the country or region where you need to collect VAT is already listed.<\/li>\n\n\n\n<li>If the region is listed, open it and configure tax or VAT collection.<\/li>\n\n\n\n<li>If the region is not listed, create or update a shipping zone for that country or region first.<\/li>\n<\/ol>\n\n\n\n<p>To create or update a shipping zone:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to\u00a0<strong>Settings > Shipping and delivery<\/strong>.<\/li>\n\n\n\n<li>Open a profile or add a custom profile and then add Zones. <\/li>\n\n\n\n<li>Add the country or region where you want to sell.<\/li>\n\n\n\n<li>Save the shipping zone.<\/li>\n\n\n\n<li>Go back to\u00a0<strong>Settings > Taxes and duties<\/strong>.<\/li>\n\n\n\n<li>Check whether the new country or region now appears under\u00a0<strong>Tax regions<\/strong>.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"680\" src=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-1024x680.png\" alt=\"a screenshot showing how to add shipping zones and profile for adding tax countries in shopify tax and duties setting section\" class=\"wp-image-5376\" srcset=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-1024x680.png 1024w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-300x199.png 300w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-768x510.png 768w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-1536x1019.png 1536w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-270x180.png 270w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM-370x245.png 370w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.11.40-PM.png 1582w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The important point is this: shipping zones only help make the region available. VAT is still configured from&nbsp;<strong>Settings &gt; Taxes and duties<\/strong>, not from the shipping settings.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-large-font-size\"><strong>C. Add VAT registration for the European Union<\/strong><\/p>\n\n\n\n<p>If you sell to customers in the European Union, you may need to add your VAT registration in Shopify.<\/p>\n\n\n\n<p>To do this:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to\u00a0<strong>Settings > Taxes and duties<\/strong>.<\/li>\n\n\n\n<li>Under\u00a0<strong>Tax regions<\/strong>, open\u00a0<strong>European Union<\/strong>\u00a0if it appears.<\/li>\n\n\n\n<li>Choose the VAT registration type that applies to your business.<\/li>\n\n\n\n<li>Enter your VAT number.<\/li>\n\n\n\n<li>Save or click\u00a0<strong>Collect VAT<\/strong>.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-large-font-size\"><strong>D. Include or exclude tax based on the customer\u2019s location<\/strong><\/p>\n\n\n\n<p>If you sell internationally, you may want Shopify to include or exclude tax based on the customer\u2019s country.<\/p>\n\n\n\n<p>For example, UK and EU customers usually expect VAT-inclusive prices, while US customers usually expect taxes to be added at checkout.<\/p>\n\n\n\n<p>In Shopify, this is related to dynamic tax-inclusive pricing. The exact location of this setting can vary depending on your Shopify Markets layout and store setup. Some stores may show it in Markets preferences, while newer layouts may show pricing and tax settings inside each market.<\/p>\n\n\n\n<p>To check it:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Open\u00a0<strong>Markets<\/strong>\u00a0from the main Shopify admin menu.<\/li>\n\n\n\n<li>Open the market you want to edit, such as\u00a0<strong>United Kingdom<\/strong>,\u00a0<strong>European Union<\/strong>,\u00a0<strong>International<\/strong>, or\u00a0<strong>United States<\/strong>.<\/li>\n\n\n\n<li>Check the market\u2019s\u00a0<strong>Pricing<\/strong>,\u00a0<strong>Taxes<\/strong>,\u00a0<strong>Duties and import taxes<\/strong>, or\u00a0<strong>Tax display<\/strong>\u00a0settings.<\/li>\n\n\n\n<li>Look for an option related to including or excluding tax based on the customer\u2019s country.<\/li>\n\n\n\n<li>If you cannot find it, use Shopify admin search and search for\u00a0<strong>dynamic tax-inclusive pricing<\/strong>\u00a0or\u00a0<strong>include or exclude tax based on customer country<\/strong>.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"501\" src=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-12.59.42-PM-1024x501.png\" alt=\"a screenshot for tax settings in Shopify markets\" class=\"wp-image-5371\" srcset=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-12.59.42-PM-1024x501.png 1024w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-12.59.42-PM-300x147.png 300w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-12.59.42-PM-768x376.png 768w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-12.59.42-PM-1536x751.png 1536w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Do not worry if your Shopify screen does not match older tutorials exactly. Shopify has changed the Markets layout, and the setting may appear in a different place depending on your store.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-large-font-size\"><strong>E. Set up duties and import taxes<\/strong><\/p>\n\n\n\n<p>If you sell internationally, you may also want to collect duties and import taxes at checkout.<\/p>\n\n\n\n<p>In the current Shopify UI, this is available under:<\/p>\n\n\n\n<p><strong>Settings &gt; Taxes and duties &gt; Duties and import taxes<\/strong><\/p>\n\n\n\n<p>You may see an option like:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Collect duties and import taxes at checkout<\/p>\n<\/blockquote>\n\n\n\n<p>This helps reduce surprise fees for international customers at delivery.<\/p>\n\n\n\n<p>To set it up:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to\u00a0<strong>Settings > Taxes and duties<\/strong>.<\/li>\n\n\n\n<li>Scroll to\u00a0<strong>Duties and import taxes<\/strong>.<\/li>\n\n\n\n<li>Click\u00a0<strong>Set up<\/strong>.<\/li>\n\n\n\n<li>Review the countries, shipping setup, and duty collection options.<\/li>\n\n\n\n<li>Save your settings.<\/li>\n<\/ol>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"776\" src=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.15.41-PM-1024x776.png\" alt=\"screenshot for duties and import taxes in shopify\" class=\"wp-image-5378\" srcset=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.15.41-PM-1024x776.png 1024w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.15.41-PM-300x227.png 300w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.15.41-PM-768x582.png 768w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.15.41-PM-87x67.png 87w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2025\/04\/Screenshot-2026-05-01-at-1.15.41-PM.png 1464w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-large-font-size\"><strong>F. Display or edit VAT wording at checkout<\/strong><\/p>\n\n\n\n<p>By default, Shopify shows tax information in the checkout order summary when taxes apply to the order.<\/p>\n\n\n\n<p>If your product prices include VAT, Shopify can show that taxes are included in the total. If product prices exclude VAT, Shopify can add taxes at checkout based on your tax setup and the customer\u2019s location.<\/p>\n\n\n\n<p>If you want to edit the wording shown in checkout, you can update your theme language:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to\u00a0<strong>Online Store > Themes<\/strong>.<\/li>\n\n\n\n<li>Click the\u00a0<strong>three dots<\/strong>\u00a0next to your active theme.<\/li>\n\n\n\n<li>Select\u00a0<strong>Edit default theme content<\/strong>.<\/li>\n\n\n\n<li>Search for tax-related words like\u00a0<strong>tax<\/strong>,\u00a0<strong>VAT<\/strong>, or\u00a0<strong>including<\/strong>.<\/li>\n\n\n\n<li>Update the text carefully.<\/li>\n\n\n\n<li>Click\u00a0<strong>Save<\/strong>.<\/li>\n<\/ol>\n\n\n\n<p>A commonly used label is:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Including {{amount}} in taxes<\/p>\n<\/blockquote>\n\n\n\n<p>This only changes the wording shown to customers. It does not change how VAT is calculated. Actual VAT calculation depends on your tax registrations, tax regions, product tax settings, tax-inclusive pricing, market settings, duties setup, and customer location.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='adding-vat-option-in-checkout-using-wholesale-pricing-discount-app'  id=\"boomdevs_21\" class=\"wp-block-heading\" id=\"22-adding-vat-option-in-checkout-using-wholesale-pricing-discount-app-\"><strong>Adding VAT option in checkout using Wholesale Pricing Discount app<\/strong>&nbsp;<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/apps.shopify.com\/wholesale-pricing-discount?utm_source=wsh-blog&amp;utm_medium=wpd-cta-button&amp;utm_campaign=wpd-app\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/apps.shopify.com\/wholesale-pricing-discount?utm_source=wsh-blog&amp;utm_medium=wpd-cta-button&amp;utm_campaign=wpd-app\" rel=\"noreferrer noopener\">Wholesale Pricing Discount<\/a> app is a B2B app that seamlessly integrates with <a href=\"https:\/\/wholesalehelper.io\/blog\/shopify-markets\/\" target=\"_blank\" data-type=\"post\" data-id=\"2318\" rel=\"noreferrer noopener\">Shopify Markets<\/a>. It allows you to show tax exemption for VAT and tax IDs (for B2B customers &#8211; based on customer tags, logged-in customers, and non-logged-in customers) during checkout.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"450\" src=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2026\/04\/image-1-1024x450.png\" alt=\"Wholesale Pricing Discount B2B App to setup B2B Tax in Shopify\" class=\"wp-image-5287\" srcset=\"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2026\/04\/image-1-1024x450.png 1024w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2026\/04\/image-1-300x132.png 300w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2026\/04\/image-1-768x337.png 768w, https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2026\/04\/image-1.png 1535w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>You can charge taxes from non-exempted customers who do not have a valid VAT number.<\/li>\n\n\n\n<li>Automatically collect VAT from non-exempted B2C customers without any interruption.<\/li>\n<\/ul>\n\n\n\n<p><strong>Note:<\/strong> You need the Wholesale Pricing Discount app installed in your Shopify store for this setup.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 id='conclusion'  id=\"boomdevs_22\" class=\"wp-block-heading\" id=\"23-conclusion-\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>As we conclude our discussion on setting up Shopify VAT, it&#8217;s important to recognize its significance. For business owners aiming to expand their reach and serve customers from EU countries, implementing Shopify VAT is crucial. It demonstrates commitment to compliance, transparency, and fosters trust with customers.<\/p>\n\n\n\n<p>By understanding VAT complexities, you can accurately collect and remit taxes while avoiding legal consequences. With the outlined steps in this blog post, setting up Shopify VAT can be a seamless process. So, take action now and confidently sell to EU countries! Remember, staying informed and up-to-date on tax laws is an ongoing responsibility. Stay updated with any future changes that may impact your business. <\/p>\n\n\n\n<p>Thanks for reading \ud83d\ude42<\/p>\n\n\n\n<div class=\"wp-block-stackable-notification stk-block-notification stk-block stk-ed10439 is-style-default\" data-v=\"2\" data-block-id=\"ed10439\"><style>.stk-ed10439 {margin-bottom:0px !important;}.stk-ed10439-container{background-color:#f0e7fa !important;}.stk-ed10439-container:before{background-color:#f0e7fa !important;}<\/style><div class=\"stk-block-notification__content stk-content-align stk-ed10439-column stk-container stk-ed10439-container stk-hover-parent\"><div class=\"stk-block-content stk-inner-blocks stk-ed10439-inner-blocks\">\n<div class=\"wp-block-stackable-text stk-block-text stk-block stk-9eb3326\" data-block-id=\"9eb3326\"><style>.stk-9eb3326 .stk-block-text__text{font-size:17px !important;}@media screen and (max-width: 1023px){.stk-9eb3326 .stk-block-text__text{font-size:17px !important;}}<\/style><p class=\"stk-block-text__text has-text-align-center\"><span style=\"color: #0f0e17;\" class=\"stk-highlight\">When native B2B is not enough, <strong>Wholesale Pricing Discount<\/strong> is the next step.<\/span><br><span style=\"color: #259b00;\" class=\"stk-highlight\"><strong><a href=\"https:\/\/apps.shopify.com\/wholesale-pricing-discount?utm_source=wsh-blog&amp;utm_medium=wpd-cta-button&amp;utm_campaign=wpd-app\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Try our Wholesale Pricing Discount app for free <\/a>!<\/strong><\/span><br><span style=\"color: #000000;\" class=\"stk-highlight\">Trusted by over <strong>16,000 <\/strong>Shopify merchants<\/span><\/p><\/div>\n<\/div><\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-large-font-size\"><strong>Frequently Asked Questions<\/strong><\/p>\n\n\n\n<div class=\"wp-block-gutena-accordion gutena-accordion-block gutena-accordion-block-56bc99-cc is-layout-flow wp-block-gutena-accordion-is-layout-flow\" data-single=\"true\">\n<div class=\"wp-block-gutena-accordion-panel gutena-accordion-block__panel\">\n<div class=\"wp-block-gutena-accordion-panel-title gutena-accordion-block__panel-title\"><div class=\"gutena-accordion-block__panel-title-inner\">\n<h6 id='how-can-i-determine-if-i-need-to-register-for-vat-for-my-shopify-store'  id=\"boomdevs_23\" class=\"wp-block-heading has-text-align-left\" style=\"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px\"><strong><strong>How can I determine if I need to register for VAT for my Shopify store?<\/strong><\/strong><\/h6>\n<div class=\"trigger-up-down\"><div class=\"horizontal\"><\/div><div class=\"vertical\"><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel-content gutena-accordion-block__panel-content\"><div class=\"gutena-accordion-block__panel-content-inner\">\n<p>You need to register for VAT if your sales exceed the threshold in your country or if you sell to customers in other countries with their own VAT thresholds.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel gutena-accordion-block__panel\">\n<div class=\"wp-block-gutena-accordion-panel-title gutena-accordion-block__panel-title\"><div class=\"gutena-accordion-block__panel-title-inner\">\n<h6 id='can-us-based-shopify-stores-be-required-to-collect-vat'  id=\"boomdevs_24\" class=\"wp-block-heading has-text-align-left\" style=\"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px\"><strong>Can US-based Shopify stores be required to collect VAT?<\/strong><\/h6>\n<div class=\"trigger-up-down\"><div class=\"horizontal\"><\/div><div class=\"vertical\"><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel-content gutena-accordion-block__panel-content\"><div class=\"gutena-accordion-block__panel-content-inner\">\n<p style=\"margin-top:0;margin-bottom:0\">Yes, if a US-based Shopify store sells products to customers in the EU or the UK, they may be required to collect VAT according to local tax laws.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel gutena-accordion-block__panel\">\n<div class=\"wp-block-gutena-accordion-panel-title gutena-accordion-block__panel-title\"><div class=\"gutena-accordion-block__panel-title-inner\">\n<h6 id='how-does-vat-work-for-b2b-sales-on-shopify'  id=\"boomdevs_25\" class=\"wp-block-heading has-text-align-left\" style=\"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px\"><strong>How does VAT work for B2B sales on Shopify?<\/strong><\/h6>\n<div class=\"trigger-up-down\"><div class=\"horizontal\"><\/div><div class=\"vertical\"><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel-content gutena-accordion-block__panel-content\"><div class=\"gutena-accordion-block__panel-content-inner\">\n<p style=\"margin-top:0;margin-bottom:0\">For B2B sales on Shopify, VAT may not be charged if the business customer provides a valid VAT number, allowing for a reverse charge mechanism.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion gutena-accordion-block gutena-accordion-block-bbe89e-2a is-layout-flow wp-block-gutena-accordion-is-layout-flow\" data-single=\"true\">\n<div class=\"wp-block-gutena-accordion-panel gutena-accordion-block__panel\">\n<div class=\"wp-block-gutena-accordion-panel-title gutena-accordion-block__panel-title\"><div class=\"gutena-accordion-block__panel-title-inner\">\n<h6 id='can-i-edit-the-vat-wording-shown-at-checkout'  id=\"boomdevs_26\" class=\"wp-block-heading has-text-align-left\" style=\"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px\"><strong>Can I edit the VAT wording shown at checkout?<\/strong><\/h6>\n<div class=\"trigger-up-down\"><div class=\"horizontal\"><\/div><div class=\"vertical\"><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel-content gutena-accordion-block__panel-content\"><div class=\"gutena-accordion-block__panel-content-inner\">\n<p style=\"margin-top:0;margin-bottom:0\">Yes. Go to\u00a0<strong>Online Store > Themes > Edit default theme content<\/strong>\u00a0and search for tax-related wording like \u201ctax\u201d, \u201cVAT\u201d, or \u201cincluding.\u201d But this only changes the text. It does not change how VAT is calculated.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel gutena-accordion-block__panel\">\n<div class=\"wp-block-gutena-accordion-panel-title gutena-accordion-block__panel-title\"><div class=\"gutena-accordion-block__panel-title-inner\">\n<h6 id='what-does-charge-tax-on-this-product-mean'  id=\"boomdevs_27\" class=\"wp-block-heading has-text-align-left\" style=\"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px\"><strong>What does \u201cCharge tax on this product\u201d mean?<\/strong><\/h6>\n<div class=\"trigger-up-down\"><div class=\"horizontal\"><\/div><div class=\"vertical\"><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel-content gutena-accordion-block__panel-content\"><div class=\"gutena-accordion-block__panel-content-inner\">\n<p style=\"margin-top:0;margin-bottom:0\">This setting tells Shopify whether a product or variant should be included in tax calculations. If it is turned off, Shopify may not charge VAT or sales tax on that product even if your tax region is set up correctly.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel gutena-accordion-block__panel\">\n<div class=\"wp-block-gutena-accordion-panel-title gutena-accordion-block__panel-title\"><div class=\"gutena-accordion-block__panel-title-inner\">\n<h6 id='should-i-speak-to-a-tax-professional-before-setting-up-vat'  id=\"boomdevs_28\" class=\"wp-block-heading has-text-align-left\" style=\"margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px\"><strong>Should I speak to a tax professional before setting up VAT?<\/strong><\/h6>\n<div class=\"trigger-up-down\"><div class=\"horizontal\"><\/div><div class=\"vertical\"><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-gutena-accordion-panel-content gutena-accordion-block__panel-content\"><div class=\"gutena-accordion-block__panel-content-inner\">\n<p style=\"margin-top:0;margin-bottom:0\">Yes. VAT rules can vary by country, product type, customer type, order value, and fulfillment setup. Shopify can help with tax calculation, but a tax professional can confirm your actual registration and filing obligations.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Key Takeaways Selling internationally on Shopify is exciting, but VAT can quickly become confusing. VAT rules are different depending on where your business is located, where your customers are located, whether you sell B2C or B2B, and whether the order is domestic or cross-border. In this guide, we\u2019ll explain what VAT means, when Shopify merchants<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":3,"featured_media":1522,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[8],"tags":[35,36],"class_list":{"0":"post-1501","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-guides","8":"tag-shopify-markets","9":"tag-vat-in-shopify"},"featured_image_src":"https:\/\/wholesalehelper.io\/blog\/wp-content\/uploads\/2023\/12\/Shopify-VAT-\u2013-For-US-EU-UK-non-EU-Businesses.png","author_info":{"display_name":"Kanishk","author_link":"https:\/\/wholesalehelper.io\/blog\/author\/kanishk\/"},"gt_translate_keys":[{"key":"link","format":"url"}],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/posts\/1501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/comments?post=1501"}],"version-history":[{"count":11,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/posts\/1501\/revisions"}],"predecessor-version":[{"id":5389,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/posts\/1501\/revisions\/5389"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/media\/1522"}],"wp:attachment":[{"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/media?parent=1501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/categories?post=1501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wholesalehelper.io\/blog\/wp-json\/wp\/v2\/tags?post=1501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}