EU taxes
After you determine where you need to charge tax in the European Union, you can set your Shopify store to automatically manage the tax rates used to calculate taxes on your sales, and set up tax overrides for products that have special tax rates. Refer to the following resources to learn more about setting up your taxes:
- If you're new to Shopify, then refer to Setting up EU taxes.
- If you already use Shopify and need to update your settings, then refer to Registration-based taxes in the EU. If there are countries listed in your tax settings where you aren't registered to collect tax, or you don't want to collect tax in those countries, then you can remove them.
- If you already use Shopify and you want to learn more about the different tax services available in your region, then refer to Choose a tax service.
If your business is based in a European Union member country, and you want to sell to other countries within the European Union, then you need to register with your local jurisdiction for a value-added tax (VAT) number. A VAT number allows you to charge VAT to your customers in the EU, based on their location. You can set up tax overrides for products that have special tax rates.
You can use Shopify to automate charging taxes, but you can't use Shopify to remit or file your taxes for you. When you know where you're responsible for charging taxes, you can follow this guide to make sure that you've configured your Shopify store to charge the correct rates.
After your store is open and has started to make sales, the Reviewing tax liabilities page can help you to determine where your store has nexus.