VAT exempt EU business customers in Shopify

If your Shopify store is based in the European Union and your business is VAT-registered, you should not charge VAT to business customers from other EU countries besides your own.

This means that business customers should be set as tax-exempt so they are not charged tax at checkout. This topic is further elaborated on in our Shopify VAT guide for selling to EU customers.

Customers from Consumers (B2C) Businesses (B2B)
The same EU country VAT VAT
A different EU country VAT No VAT
Outside the EU No VAT No VAT
With Sufio, you can capture and validate EU VAT registration numbers from your business customers and, if applicable, set them as tax-exempt.

Additionally, to make your invoices valid and compliant with accounting legislation, you may also include VAT numbers from business customers. Additionally, you can add a note stating that services are subject to the reverse charge and VAT is to be accounted for by the recipient as per Article 196 of Council Directive 2006/112/EC.

Need help?

Are there any other specific details that your invoices should include? Please, get in touch with our experienced support team. We'll be happy to set your Sufio account to accommodate your needs.

Enable EU VAT exemptions

To automate the VAT exemption process and let Sufio tax-exempt customers in your Shopify store, you need to enable EU VAT Exemptions in your Sufio account.

To enable EU VAT exemptions:

  1. In your Sufio account, go to the Settings → Taxes page.
  2. Check the Enable EU VAT Exemptions checkbox.
  3. Save your changes.

If you also want to validate all VAT registration numbers using the official VIES VAT number validation service, check the Validate VAT Numbers checkbox too.

Note

The VIES VAT registration number validation feature is only available on our Standard and higher plans.

Update your Shopify store theme

To allow your customers to enter their VAT registration number and become automatically tax-exempt, you will need to add a new input field to your Shopify store.

You can let customers enter their VAT registration numbers on the customer registration page, customer account page, or cart page. Online stores running on the Shopify Plus plan can also capture VAT numbers at checkout.

Customer registration page

Let your customers enter their VAT registration numbers when registering on your online store.

Customer account page

Let your customers enter and manage their VAT registration number on their account page.

Cart page

Let your customers enter their VAT registration number just before checkout.

Checkout page

Let your customers enter their VAT registration number at checkout on your Shopify Plus store.

In some countries, it is allowed to tax-exempt customers with a disability without having a valid VAT registration number. To learn more, please look at our Set customers with a disability as VAT-exempt guide.

Note

In order to tax-exempt your customers, make sure you have correctly set up EU taxes in your Shopify store.