The new EU taxes feature
If you're already using Shopify to sell in the European Union, then you can update your EU tax settings to reflect your tax registrations. This change doesn't affect how tax is charged on your store.
When you update your tax settings, you're asked to provide a VAT number. After it's been added, Shopify automatically sets the tax rates that apply in the areas you've registered for.
Shopify Support can help you update your tax settings in your Shopify admin, but can't provide legal tax advice. If you need help changing your tax settings, then contact Shopify Support. If you need help understanding your tax obligations, then contact local tax authorities or a tax professional.
Do I need to register to charge taxes in an EU country?
It depends. In general, you're obligated to collect tax in any EU member country where you sell taxable goods or services. For more information, refer to EU tax reference.
What's a VAT number? Do I need one?
A VAT number, also referred to as a value-added tax identification number (VATIN), is an identifier used in the EU. It's provided to you by a member country's tax authority after you register with them. This number is issued by countries to charge value-added tax.
How do I know if I need to register to charge taxes?
Typically, you need to register with the tax authorities in your own country to charge VAT if you intend to sell to other countries in the EU. If you have a significant business presence in another country in the EU, or pass a certain threshold of sales to that country, then you might need to register in that country as well. What constitutes this threshold in each country can differ from country to country.
If you have any significant presence in a country, then you should contact its tax authority to confirm whether you need to register to collect taxes. For more details, see EU tax reference.
How do I register to charge taxes in an EU country?
If you need to register to charge taxes in an EU country, then you can contact that country's tax authorities.
After you've registered, add your VAT number on the Taxes page.
- From the Shopify admin, go to Settings > Taxes.
- In the Tax regions section, beside European Union, click Set up.
- In the VAT registrations section, click Add VAT registration.
- Select a country in which you are registered.
- In VAT number, enter your VAT number.
- Click Add VAT registration.
- (Optional) Add more regions and account numbers, click Add VAT registration.
You can delete or change your registrations or account numbers with the
... button next to the country name and account number in the Tax registrations section.
Will I be able to override tax settings?
Yes. For more information about how EU tax overrides are affected when you update, refer to Override taxes.
Where can I go for more help?
Shopify Support can help you with how to change your settings, but can't advise you on if you should change your settings. If you need help determining if you should register with VAT member countries and charge taxes to your customers, then your best resource is a local expert, such as an accountant or financial advisor. You can also contact individual country tax authorities directly.
After I update my tax settings, why are the tax amounts different than before on customer orders?
In some orders, you might notice a small variance in your total tax amounts after you've updated your tax settings. This variance is due to tax amounts being rounded at the line-item level, rather than at the invoice level. You can learn more about rounding calculations in Setting up EU taxes.