Shopify announced a new update on the VAT registration and setup in EU and UK.

The new EU VAT registration feature will automatically calculate VAT rates depending on the EU countries you have registered your business in.

If you’re already using Shopify to sell in the European Union, then you will receive an email notification asking you to update your EU tax settings to reflect your tax registration country. This change doesn’t affect how tax is charged on your store, so wether product prices on your store are VAT included or excluded they will stay a they are.

Automatic tax setup for EU in Shopify

As you can see from the screenshot above when you update your tax settings you will be asked to provide a VAT number. After it’s been added, Shopify automatically sets the tax rates according to your registration country. For example if your store is registered only in Italy the Italian VAT rate will be applied to all customers buying from the EU and UK.

Setup automatico tasse EU con Shopify

Please follow these steps to set up automatic tax rates for EU and UK for your store:

1. From the Shopify admin, go to Settings > Taxes.
2. In the Tax regions section, beside European Union, click Set up.
3. In the VAT registrations section, click Add VAT registration.
4. Select a country in which you are registered.
5. In VAT number, enter your VAT number.
6. Click Add VAT registration.

Further info is available at this link. Shopify Support Channel can also help you update your tax settings on your online store. 

Click here for a free Shopify trial. 

Foto di Silvia Ciniselli

About the author

Silvia Ciniselli

Co-founder of Nama Studio, Silvia is a Project Manager with an obsession for simple solutions for complex problems. Adventure videogame lover and fluent Japanese speaker, she will guide you through the tips and tricks of Shopify.