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.

Sufio allows you to capture and validate EU VAT registration numbers from your business customers and, when applicable, automatically set them as tax-exempt.

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.

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

Tip

When to charge VAT to your European customers? Read our VAT guide for Shopify stores selling in the EU.

Enable VAT exemptions

To enable VAT exemptions:

  1. In your Sufio account, go to 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 number validation is available in our Standard and Premium 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 capture VAT registration numbers on the customer registration page, customer account page or the cart page. Online stores running on Shopify Plus plan are allowed to capture VAT numbers on the checkout page.

Customer registration page

Allow customers to enter VAT registration numbers while setting up their account.

Customer account page

Enable customers to enter VAT registration numbers on the customer account page.

Cart page

Let your customers enter their VAT registration number on the cart page.

Checkout page

Include VAT registration number field on the checkout page of your Shopify Plus store.

In some countries, it is allowed to tax-exempt customers with a disability without them having to have 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.