{"id":855,"date":"2025-11-21T14:54:51","date_gmt":"2025-11-21T14:54:51","guid":{"rendered":"http:\/\/wordpress-newcraft-wordpress-c65f4c-91-98-137-5.traefik.me\/?post_type=marketing-post&#038;p=855"},"modified":"2026-02-28T10:54:07","modified_gmt":"2026-02-28T09:54:07","slug":"complete-vat-guide-eu-shopify","status":"publish","type":"marketing-post","link":"https:\/\/newcraft.dev\/nl\/posts\/complete-vat-guide-eu-shopify\/","title":{"rendered":"The Complete VAT Guide for EU Shopify Stores (2025)"},"content":{"rendered":"\n<p>Running a Shopify store in the EU and confused about VAT? You&#8217;re not alone. This complete VAT guide for EU Shopify stores breaks down exactly when to charge VAT, when not to, and how to handle B2B exemptions correctly. Whether you&#8217;re selling to consumers or businesses across Europe, the <a href=\"https:\/\/newcraft.dev\/apps\/eu-vat-b2b-exemptions\/\">EU Tax Exemption app<\/a> makes the technical side manageable.<\/p>\n\n\n\n<p><strong>Quick Navigation:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/newcraft.dev\/posts\/complete-vat-guide-eu-shopify\/#not-registered\">Not VAT registered? Read this<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/newcraft.dev\/posts\/complete-vat-guide-eu-shopify\/#registered\">VAT registered? Here\u2019s what you need to know<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/newcraft.dev\/posts\/complete-vat-guide-eu-shopify\/#b2b-exemption\">B2B sales &amp; VAT exemption<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/newcraft.dev\/posts\/complete-vat-guide-eu-shopify\/#automation\">How to automate VAT validation<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"-2025-update-new-eu-vat-rules\">\ud83d\udea8 2025 Update: New EU VAT Rules<\/h2>\n\n\n\n<p>The EU introduced new simplified VAT schemes for SMEs on January 1, 2025. If your annual EU-wide turnover is below \u20ac100,000, you might qualify for VAT exemption.<\/p>\n\n\n\n<p><strong>Important:<\/strong> Implementation varies by country, so check with your local tax authority.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"do-you-even-need-to-worry-about-vat\">Do You Even Need to Worry About VAT?<\/h2>\n\n\n\n<p>Before we dive in, let\u2019s figure out if you\u2019re VAT-registered.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"youre-probably-not-vat-registered-if\"><a><\/a>You\u2019re Probably NOT VAT-Registered If:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your annual turnover is below \u20ac20,000-\u20ac100,000 (depends on your country)<\/li>\n\n\n\n<li>You just started selling<\/li>\n\n\n\n<li>You haven\u2019t received VAT registration papers from your tax office<\/li>\n<\/ul>\n\n\n\n<p><strong>Good news:<\/strong> If you\u2019re not VAT-registered, you don\u2019t charge VAT to anyone &#8211; regardless of where they\u2019re from. Keep it simple!<\/p>\n\n\n\n<p><strong>When to register:<\/strong> Once you hit your country\u2019s threshold (\u20ac20,000 in Netherlands, varies by country), you legally must register.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"vat-registered-heres-your-cheat-sheet\"><a><\/a>VAT-Registered? Here\u2019s Your Cheat Sheet<\/h2>\n\n\n\n<p>Once you\u2019re VAT-registered, things get interesting. Whether you charge VAT depends on two things:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Where is your customer?<\/strong> (Same country, different EU country, or outside EU)<\/li>\n\n\n\n<li><strong>Who is your customer?<\/strong> (Consumer or business)<\/li>\n<\/ol>\n\n\n\n<p>Here\u2019s the quick reference table:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Customer Location<\/th><th>B2C (Consumers)<\/th><th>B2B (Businesses with VAT ID)<\/th><\/tr><\/thead><tbody><tr><td>\ud83c\udfe0 Same EU country<\/td><td>\u2705 Charge VAT<\/td><td>\u2705 Charge VAT<\/td><\/tr><tr><td>\ud83c\uddea\ud83c\uddfa Different EU country<\/td><td>\u2705 Charge VAT*<\/td><td>\u274c No VAT (reverse charge)<\/td><\/tr><tr><td>\ud83c\udf0d Outside EU<\/td><td>\u274c No VAT<\/td><td>\u274c No VAT<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>*With some exceptions &#8211; keep reading!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"scenario-1-customers-in-your-home-country\">Scenario 1: Customers in Your Home Country<\/h2>\n\n\n\n<p><strong>Simple rule:<\/strong> Always charge VAT to everyone in your own country.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dutch store \u2192 Dutch customer = 21% VAT<\/li>\n\n\n\n<li>German store \u2192 German customer = 19% VAT<\/li>\n\n\n\n<li>French store \u2192 French customer = 20% VAT<\/li>\n<\/ul>\n\n\n\n<p>Doesn\u2019t matter if it\u2019s a consumer or business &#8211; same country = always charge VAT.<\/p>\n\n\n\n<p><strong>Why?<\/strong> Because this is your \u201chome turf\u201d where you\u2019re registered. No exceptions here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"scenario-2-consumers-from-other-eu-countries\">Scenario 2: Consumers from Other EU Countries<\/h2>\n\n\n\n<p>This is where it gets tricky. You <strong>do<\/strong> charge VAT, but which rate?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"the-10000-threshold-micro-business-rule\">The \u20ac10,000 Threshold (Micro-Business Rule)<\/h3>\n\n\n\n<p><strong>If your annual EU cross-border sales are under \u20ac10,000:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u2705 Charge your home country\u2019s VAT rate<\/li>\n\n\n\n<li>\u2705 Simple &#8211; one rate for everyone<\/li>\n\n\n\n<li>\u2705 No need to register in other countries<\/li>\n<\/ul>\n\n\n\n<p><strong>Example:<\/strong> You\u2019re a Dutch store selling to French customers. Sales are \u20ac8,000\/year. You charge Dutch VAT (21%) to everyone.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"over-10000-welcome-to-destination-based-vat\">Over \u20ac10,000? Welcome to Destination-Based VAT<\/h3>\n\n\n\n<p><strong>If your annual EU cross-border sales exceed \u20ac10,000:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Charge the customer\u2019s local VAT rate<\/li>\n\n\n\n<li>Germany = 19%, France = 20%, Italy = 22%, etc.<\/li>\n\n\n\n<li>You\u2019ll need to register for VAT in those countries OR use the One Stop Shop (OSS) system<\/li>\n<\/ul>\n\n\n\n<p><strong>Example:<\/strong> Same Dutch store, but now selling \u20ac50,000\/year across EU. French customers pay 20% French VAT, German customers pay 19% German VAT.<\/p>\n\n\n\n<p><strong>Pro tip:<\/strong> Shopify can calculate these rates automatically once you set it up correctly. <a href=\"https:\/\/newcraft.dev\/posts\/complete-vat-guide-eu-shopify\/#shopify-setup\">Here\u2019s how \u2192<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"scenario-3-b2b-sales-the-reverse-charge-mechanism\"><a><\/a>Scenario 3: B2B Sales (The Reverse Charge Mechanism)<\/h2>\n\n\n\n<p>Here\u2019s where you can save your business customers money &#8211; and yourself admin time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"the-rule-cross-border-b2b--no-vat\">The Rule: Cross-Border B2B = No VAT<\/h3>\n\n\n\n<p>When selling to a <strong>VAT-registered business in another EU country<\/strong>, you don\u2019t charge VAT.<\/p>\n\n\n\n<p><strong>Why?<\/strong> The \u201creverse charge mechanism\u201d &#8211; the buyer pays VAT in their own country instead.<\/p>\n\n\n\n<p><strong>Requirements:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>\u2705 Customer must have a valid VAT ID (e.g., DE123456789)<\/li>\n\n\n\n<li>\u2705 Customer must be in a different EU country than you<\/li>\n\n\n\n<li>\u2705 You must verify the VAT ID is valid<\/li>\n\n\n\n<li>\u2705 Invoice must show both VAT numbers + \u201cReverse charge\u201d note<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-this-looks-in-practice\">How This Looks in Practice<\/h3>\n\n\n\n<p><strong>Wrong way:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dutch store \u2192 German business customer<\/li>\n\n\n\n<li>Invoice shows 21% Dutch VAT<\/li>\n\n\n\n<li>Customer pays \u20ac121 (\u20ac100 + \u20ac21 VAT)<\/li>\n\n\n\n<li>Customer is annoyed &#8211; they\u2019re double-taxed!<\/li>\n<\/ul>\n\n\n\n<p><strong>Right way:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dutch store \u2192 German business customer<\/li>\n\n\n\n<li>Verify VAT ID: DE123456789 \u2705<\/li>\n\n\n\n<li>Invoice shows \u20ac100, no VAT<\/li>\n\n\n\n<li>Note: \u201cReverse charge &#8211; recipient responsible for VAT\u201d<\/li>\n\n\n\n<li>Customer pays \u20ac100, handles VAT in Germany themselves<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"automating-b2b-vat-exemption\"><a><\/a>Automating B2B VAT Exemption<\/h3>\n\n\n\n<p>Manually checking every VAT ID is a pain. Here\u2019s what you need:<\/p>\n\n\n\n<p><strong>The manual process (don\u2019t do this):<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Customer claims they\u2019re a business<\/li>\n\n\n\n<li>You ask for VAT ID via email<\/li>\n\n\n\n<li>You check it on VIES database<\/li>\n\n\n\n<li>You manually mark them tax-exempt in Shopify<\/li>\n\n\n\n<li>You remember to do this every time<\/li>\n\n\n\n<li>You file the certificate somewhere<\/li>\n\n\n\n<li>Repeat for every B2B customer\u2026 \ud83d\ude2b<\/li>\n<\/ol>\n\n\n\n<p><strong>The automated process (do this):<\/strong><\/p>\n\n\n\n<p>Use the <a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\">EU Tax Exemption App<\/a> to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Add a VAT ID field on your cart\/checkout<\/li>\n\n\n\n<li>Auto-validate against EU VIES database in real-time<\/li>\n\n\n\n<li>Apply tax exemption instantly if valid<\/li>\n\n\n\n<li>Store validation records for audits<\/li>\n\n\n\n<li>Add proper notes to invoices automatically<\/li>\n<\/ul>\n\n\n\n<p><strong>Installation takes 2 minutes. Free plan available.<\/strong> <a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\">Try it here \u2192<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"scenario-4-customers-outside-the-eu\">Scenario 4: Customers Outside the EU<\/h2>\n\n\n\n<p><strong>Simple rule:<\/strong> No VAT for anyone outside the EU.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\ud83c\uddfa\ud83c\uddf8 US customers? No VAT<\/li>\n\n\n\n<li>\ud83c\uddec\ud83c\udde7 UK customers? No VAT (since Brexit)<\/li>\n\n\n\n<li>\ud83c\udde8\ud83c\udded Swiss customers? No VAT<\/li>\n\n\n\n<li>\ud83c\udde6\ud83c\uddfa Australian customers? No VAT<\/li>\n<\/ul>\n\n\n\n<p><strong>Important:<\/strong> You still report these as 0% VAT sales for tax purposes. Keep proper invoices as proof of export.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"special-note-uk-after-brexit\">Special Note: UK After Brexit<\/h3>\n\n\n\n<p>Since January 1, 2021, the UK is treated as \u201coutside EU\u201d with special rules:<\/p>\n\n\n\n<p><strong>For orders under \u00a3135:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Register for UK VAT<\/li>\n\n\n\n<li>Charge 20% UK VAT at checkout<\/li>\n\n\n\n<li>You handle the VAT<\/li>\n<\/ul>\n\n\n\n<p><strong>For orders over \u00a3135:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No VAT at checkout<\/li>\n\n\n\n<li>Customer pays import VAT when receiving goods<\/li>\n<\/ul>\n\n\n\n<p>Most small EU stores avoid this headache by not shipping to the UK. \ud83e\udd37\u200d\u2642\ufe0f<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"setting-up-vat-in-shopify-the-right-way\"><a><\/a>Setting Up VAT in Shopify (The Right Way)<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-1-configure-your-store\">Step 1: Configure Your Store<\/h3>\n\n\n\n<pre class=\"wp-block-code\"><code>Settings \u2192 Taxes and Duties \u2192 European Union<\/code><\/pre>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Enter your VAT registration number<\/li>\n\n\n\n<li>Enable automatic tax calculation<\/li>\n\n\n\n<li>Set up countries where you\u2019re registered<\/li>\n\n\n\n<li>Configure exemptions for B2B customers<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-2-handle-b2b-customers-with-the-eu-tax-exemption-app\">Step 2: Handle B2B Customers with the EU Tax Exemption App<\/h3>\n\n\n\n<p><strong>Why avoid manual work?<\/strong><\/p>\n\n\n\n<p>The manual approach requires you to for every single business customer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Open their profile in Shopify<\/li>\n\n\n\n<li>Go to \u201cManage tax settings\u201d<\/li>\n\n\n\n<li>Select \u201cDon\u2019t collect tax\u201d<\/li>\n\n\n\n<li>Repeat this for every new B2B customer\u2026<\/li>\n<\/ul>\n\n\n\n<p>This is time-consuming, error-prone, and doesn\u2019t scale as your business grows.<\/p>\n\n\n\n<p><strong>The automated solution (recommended):<\/strong><\/p>\n\n\n\n<p>The <a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\">EU Tax Exemption App<\/a> automates this entire process:<\/p>\n\n\n\n<p><strong>What the app does:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Real-time validation during checkout<\/strong>\n<ul class=\"wp-block-list\">\n<li>Adds a VAT number field to your cart<\/li>\n\n\n\n<li>Validates instantly via the official EU VIES database<\/li>\n\n\n\n<li>Shows immediately if the number is valid<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Automatic tax exemption<\/strong>\n<ul class=\"wp-block-list\">\n<li>No more manual work needed<\/li>\n\n\n\n<li>VAT is automatically removed for valid numbers<\/li>\n\n\n\n<li>Customer sees business price immediately<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Customer recognition<\/strong>\n<ul class=\"wp-block-list\">\n<li>Saved customers don\u2019t need to re-enter their VAT number<\/li>\n\n\n\n<li>System recognizes them automatically on return<\/li>\n\n\n\n<li>Seamless checkout experience<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Complete documentation<\/strong>\n<ul class=\"wp-block-list\">\n<li>All validations are automatically logged<\/li>\n\n\n\n<li>Export to CSV for your accounting<\/li>\n\n\n\n<li>Perfectly prepared for tax audits<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Compliant invoices<\/strong>\n<ul class=\"wp-block-list\">\n<li>Automatically adds \u201cReverse charge\u201d notes<\/li>\n\n\n\n<li>Shows both VAT numbers correctly<\/li>\n\n\n\n<li>Meets all EU requirements<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<p><strong>Installation in 3 steps:<\/strong><\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>1. Install the app from Shopify App Store\n2. Customize the widget to match your brand (optional)\n3. Done - start validating immediately!<\/code><\/pre>\n\n\n\n<p><strong>Benefits:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u2705 Save 10+ hours per week<\/li>\n\n\n\n<li>\u2705 Zero validation errors<\/li>\n\n\n\n<li>\u2705 Better conversion (customers see business prices immediately)<\/li>\n\n\n\n<li>\u2705 Audit-proof administration<\/li>\n\n\n\n<li>\u2705 Multi-language support for all EU countries<\/li>\n\n\n\n<li>\u2705 Free plan available<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\"><strong>Install the EU Tax Exemption App \u2192<\/strong><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-3-generate-compliant-invoices\">Step 3: Generate Compliant Invoices<\/h3>\n\n\n\n<p>Your invoices need:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your VAT number<\/li>\n\n\n\n<li>Customer\u2019s VAT number (for B2B)<\/li>\n\n\n\n<li>\u201cReverse charge\u201d note (for cross-border B2B)<\/li>\n\n\n\n<li>Correct VAT rates per country<\/li>\n\n\n\n<li>Line-item tax breakdown<\/li>\n<\/ul>\n\n\n\n<p>Shopify\u2019s default invoices often miss these details. Consider using invoice apps like Sufio or Order Printer Pro, or use our app which handles this automatically.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"real-world-examples\">Real-World Examples<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"example-1-dutch-webshop-various-customers\">Example 1: Dutch webshop, various customers<\/h3>\n\n\n\n<p><strong>Situation:<\/strong> You\u2019re selling from the Netherlands to different customers.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Customer<\/th><th>Type<\/th><th>Country<\/th><th>VAT?<\/th><th>Rate<\/th><th>Why?<\/th><\/tr><\/thead><tbody><tr><td>Jan de Vries<\/td><td>Consumer<\/td><td>\ud83c\uddf3\ud83c\uddf1 NL<\/td><td>\u2705 Yes<\/td><td>21% NL<\/td><td>Domestic B2C<\/td><\/tr><tr><td>TechCo BV (NL123456789B01)<\/td><td>Business<\/td><td>\ud83c\uddf3\ud83c\uddf1 NL<\/td><td>\u2705 Yes<\/td><td>21% NL<\/td><td>Domestic B2B<\/td><\/tr><tr><td>Marie Dubois<\/td><td>Consumer<\/td><td>\ud83c\uddeb\ud83c\uddf7 FR<\/td><td>\u2705 Yes<\/td><td>21% NL*<\/td><td>EU B2C under threshold<\/td><\/tr><tr><td>SARL Innovation (FR12345678901)<\/td><td>Business<\/td><td>\ud83c\uddeb\ud83c\uddf7 FR<\/td><td>\u274c No<\/td><td>&#8211;<\/td><td>EU B2B reverse charge<\/td><\/tr><tr><td>John Smith<\/td><td>Consumer<\/td><td>\ud83c\uddfa\ud83c\uddf8 US<\/td><td>\u274c No<\/td><td>&#8211;<\/td><td>Outside EU<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>*Assuming you\u2019re under the \u20ac10,000 threshold. Otherwise 20% French VAT.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"example-2-german-store-grows-above-threshold\">Example 2: German store grows above threshold<\/h3>\n\n\n\n<p><strong>Year 1 &#8211; Under \u20ac10,000:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total EU sales: \u20ac8,500<\/li>\n\n\n\n<li>Austrian customer orders \u20ac100<\/li>\n\n\n\n<li>You charge: \u20ac100 + \u20ac19 (German VAT) = \u20ac119<\/li>\n\n\n\n<li>Simple!<\/li>\n<\/ul>\n\n\n\n<p><strong>Year 2 &#8211; Above \u20ac10,000:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total EU sales: \u20ac45,000<\/li>\n\n\n\n<li>Austrian customer orders \u20ac100<\/li>\n\n\n\n<li>You charge: \u20ac100 + \u20ac20 (Austrian VAT) = \u20ac120<\/li>\n\n\n\n<li>You need to use OSS or register in Austria<\/li>\n<\/ul>\n\n\n\n<p><strong>Solution:<\/strong> Register for OSS (One Stop Shop) via your tax authority. Report all EU sales in one return, pay VAT to your own country, they distribute it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"example-3-b2b-sale-with-validation\">Example 3: B2B sale with validation<\/h3>\n\n\n\n<p><strong>Scenario:<\/strong> Spanish store sells to Italian business.<\/p>\n\n\n\n<p><strong>Customer enters:<\/strong> IT12345678901<\/p>\n\n\n\n<p><strong>App validates:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u2705 Format correct<\/li>\n\n\n\n<li>\u2705 VIES database confirms validity<\/li>\n\n\n\n<li>\u2705 Company name matches: \u201cRossi SRL\u201d<\/li>\n\n\n\n<li>\u2705 Different country than seller<\/li>\n<\/ul>\n\n\n\n<p><strong>Result:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>VAT is automatically removed<\/li>\n\n\n\n<li>Invoice shows: \u201cReverse charge &#8211; art. 194 VAT Directive\u201d<\/li>\n\n\n\n<li>Both VAT numbers on invoice<\/li>\n\n\n\n<li>Validation saved for audit<\/li>\n<\/ul>\n\n\n\n<p><strong>If number was invalid:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u274c Validation fails<\/li>\n\n\n\n<li>Customer sees message: \u201cVAT number not valid\u201d<\/li>\n\n\n\n<li>Normal VAT is charged<\/li>\n\n\n\n<li>Customer can correct number or proceed as consumer<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-if-a-customer-claims-a-vat-number-but-its-invalid\">What if a customer claims a VAT number but it\u2019s invalid?<\/h3>\n\n\n\n<p>You <strong>must<\/strong> charge VAT if the number cannot be validated. It\u2019s your responsibility to verify. During an audit, you\u2019re liable if you incorrectly didn\u2019t charge VAT.<\/p>\n\n\n\n<p>Our app handles this automatically &#8211; invalid numbers = normal VAT is charged.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"do-i-need-to-periodically-revalidate-vat-numbers\">Do I need to periodically revalidate VAT numbers?<\/h3>\n\n\n\n<p>Yes, best practice is to revalidate quarterly. Businesses can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Go bankrupt<\/li>\n\n\n\n<li>Lose their registration<\/li>\n\n\n\n<li>Move to another country<\/li>\n<\/ul>\n\n\n\n<p>The EU Tax Exemption App can do this automatically for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-about-digital-products-and-services\">What about digital products and services?<\/h3>\n\n\n\n<p>Digital products follow the same rules, but with some nuances:<\/p>\n\n\n\n<p><strong>B2C (consumers):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Always charge VAT at customer\u2019s location<\/li>\n\n\n\n<li>No \u20ac10,000 threshold &#8211; from \u20ac1 already destination-based VAT<\/li>\n\n\n\n<li>OSS is mandatory for digital services<\/li>\n<\/ul>\n\n\n\n<p><strong>B2B (businesses):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reverse charge applies here too<\/li>\n\n\n\n<li>Always validate the VAT number<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"can-i-try-the-app-for-free\">Can I try the app for free?<\/h3>\n\n\n\n<p>Yes! The <a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\">EU Tax Exemption App<\/a> has a free plan for small stores. You can start immediately without a credit card.<\/p>\n\n\n\n<p>Paid plans offer more validations and extra features, but the free plan is perfect to get started.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-if-vies-is-offline\">What if VIES is offline?<\/h3>\n\n\n\n<p>The VIES database sometimes goes offline for maintenance. Our app:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automatically retries after a few minutes<\/li>\n\n\n\n<li>Shows a clear message to the customer<\/li>\n\n\n\n<li>Lets you set whether orders should be accepted during downtime<\/li>\n\n\n\n<li>Still validates once VIES is back online<\/li>\n<\/ul>\n\n\n\n<p>You can also set up that orders are accepted as \u201cpending validation\u201d and you validate them later before shipping.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-about-brexit-and-the-uk\">What about Brexit and the UK?<\/h3>\n\n\n\n<p>Since January 1, 2021, the UK is no longer part of the EU for VAT purposes:<\/p>\n\n\n\n<p><strong>Sales from EU to UK:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under \u00a3135: Register for UK VAT, charge 20%<\/li>\n\n\n\n<li>Over \u00a3135: No VAT, customer pays on import<\/li>\n<\/ul>\n\n\n\n<p><strong>Sales from UK to EU:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Register for VAT in EU countries or use IOSS<\/li>\n\n\n\n<li>Charge VAT per destination country<\/li>\n<\/ul>\n\n\n\n<p>Most small webshops choose not to sell to\/from the UK because of the complexity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-bottom-line\">The Bottom Line<\/h2>\n\n\n\n<p><strong>VAT in the EU is complex, but here\u2019s what matters:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>\u2705 Same country = always charge VAT<\/li>\n\n\n\n<li>\u2705 EU consumers = charge VAT (rate depends on your turnover)<\/li>\n\n\n\n<li>\u2705 EU businesses = no VAT (if validated VAT number)<\/li>\n\n\n\n<li>\u2705 Outside EU = no VAT<\/li>\n<\/ol>\n\n\n\n<p><strong>Want to make B2B VAT exemption automatic?<\/strong><\/p>\n\n\n\n<p>Stop manually checking VAT IDs and marking customers tax-exempt. Let our app handle it:<\/p>\n\n\n\n<p>\u2705 Real-time VAT validation \u2705 Automatic tax exemption \u2705 Compliant invoicing \u2705 Audit-ready records \u2705 2-minute setup \u2705 Free plan available<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\">Install EU Tax Exemption for free \u2192<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"need-more-help\">Need More Help?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\ud83d\udcda <a href=\"https:\/\/newcraft.dev\/blog\">Read our other EU tax guides<\/a><\/li>\n\n\n\n<li>\ud83c\udfa5 <a href=\"https:\/\/www.youtube.com\/watch?v=tiX0UXyoNig\" target=\"_blank\" rel=\"noopener\">Watch setup tutorial<\/a><\/li>\n\n\n\n<li>\ud83d\udcac <a href=\"https:\/\/apps.shopify.com\/tax-exemption\" target=\"_blank\" rel=\"noopener\">Ask a question via app support<\/a><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions: EU VAT for Shopify Stores<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Comprehensive guide on when to charge VAT in your Shopify store. B2C, B2B, intra-community supplies and automation &#8211; everything you need to know.<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false,"_breakdance_hide_in_design_set":false,"_breakdance_tags":""},"class_list":["post-855","marketing-post","type-marketing-post","status-publish","hentry"],"acf":{"related_apps":""},"_links":{"self":[{"href":"https:\/\/newcraft.dev\/nl\/wp-json\/wp\/v2\/marketing-post\/855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newcraft.dev\/nl\/wp-json\/wp\/v2\/marketing-post"}],"about":[{"href":"https:\/\/newcraft.dev\/nl\/wp-json\/wp\/v2\/types\/marketing-post"}],"wp:attachment":[{"href":"https:\/\/newcraft.dev\/nl\/wp-json\/wp\/v2\/media?parent=855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}