Inquiry Regarding VAT Charges for EU and UK Customers

Partner Discussions
1

We are currently configuring our tax settings and need clarification regarding VAT charges for our customers in the UK and the EU. Specifically, we would like to know if it is possible to set up our Shopify store in a way that:

  1. EU customers do not pay VAT if they are purchasing from an EU country.
  2. UK customers are required to pay VAT.

We understand that, by regulation, VAT should be charged based on the shipping address. If the shipping address is in the EU, VAT must be applied. However, we would like to confirm if there is a way to implement a setup where only UK customers are charged VAT while exempting EU customers.

Could you please provide guidance on how we can configure our tax settings accordingly? If this setup is not possible directly in Shopify, do you have any recommended workarounds or third-party solutions that could help us achieve this?

2

Hi May,

This community forum is for developers building with Shopify APIs. There’s an Accounting & Taxes board on the merchant forums here: Accounting and Taxes - Shopify Community