Managing VAT requirements for Shopify billing in European stores

Understanding Value-Added Tax (VAT) requirements is important for managing your Shopify store in Europe. This page explains how to submit your VAT number, assess VAT charges in specific countries such as Ireland and Switzerland, and understand VAT exemptions in Türkiye.

For information on charging VAT to customers, refer to UK tax reference.

Providing or updating your VAT number for European Shopify stores

If your store is located in Europe, then you need to either provide a Value-Added Tax (VAT) number or indicate that you don't have one.

Shopify checks your VAT number using the VAT Information Exchange System (VIES), and will update the status from pending to verified after the verification is complete.

Note

VAT numbers submitted to Shopify must be valid for cross-border transactions. You can check if your business is registered to trade cross-border with the VIES on-the-Web tool.

Steps:

1. From your Shopify admin, go to Settings > Billing.

2. Click Billing profile.

3. In the VAT number section, provide your VAT information:

   • If you have a VAT number, then click Add VAT number, enter it in the space provided, and then click Save.
   • If you don't have a VAT number, click I don't have a VAT number, and then click Confirm. The VAT number is displayed as N/A.

4. Click Save.

Understanding VAT charges for Shopify stores in Ireland

If your store is located in Ireland, then you're charged 23% VAT on your relevant Shopify fees. This charge is reflected in all your monthly bills.

Navigating VAT charges for Shopify stores in Switzerland

If your store is located in Switzerland, then you're charged 7.7% VAT on your relevant Shopify fees. This charge is reflected in all your monthly bills.

Add a VAT exemption for Shopify stores in Türkiye

If your store is based in Türkiye, then Shopify is required to add VAT to your Shopify bill. However, your Shopify bills might be exempt from VAT if you provide a 10-digit Tax Identification Number (Vergi Numarasi).

Adding your Tax Identification Number to your Shopify store is necessary to qualify for VAT exemption on your Shopify subscription.

Steps:

1. From your Shopify admin, go to Settings > Billing.

2. Click Billing profile.

3. In the Tax registration section, click Yes, I'm VAT registered.

4. Enter your Tax Identification Number, and then click Add Tax Identification Number.