Goal: when checkout recognizes a buyer as VAT-exempt (valid EU VAT ID), Shopify’s dynamic tax removes VAT and recalculates the total and your store shows a small popup/banner explaining the price change.
Solution (simple): use our EU Tax Exemption app and configure the correct Shopify Taxes + Shopify Markets settings. That’s it. No brittle theme hacks.
What the buyer sees
- Buyer enters a valid EU VAT number.
- Our app validates it and flags the buyer as VAT-exempt.
- Shopify dynamic taxes remove VAT; the total updates immediately.
- A popup/banner appears: “Price update.”

Prerequisites (Shopify settings that must be correct)
- Shopify Markets
- Add EU markets/countries you sell to.
- Ensure you’re collecting the right VAT per market.
- Taxes and duties
- Enter your VAT registrations where applicable.
- Enable VAT collection for those markets.
- Use Shopify’s Include or exclude tax based on customer location behavior as appropriate for your pricing model.
- B2B context
- You sell cross-border B2B to other EU member states (reverse charge context).
- (Domestic B2B and B2C typically still include VAT.)
- Real-time VIES validation: confirms the VAT number and stores audit proof (including timestamp + consultation number).
- Tax-exempt signal to checkout: once validated, checkout knows the buyer is exempt so Shopify can drop VAT to €0.
- Price-change popup/banner: when checkout finishes recalculating, Shopify shows a one-time, accessible popup/ banner.
Setup in 3 steps
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Configure Shopify Taxes + Markets correctly
- Add EU markets, enter VAT registrations, and ensure VAT is collected for the right regions.
- Confirm your tax inclusion/exclusion display behavior aligns with your pricing. Dynamic tax display is required to automatically modify prices..

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Install & configure our EU Tax Exemption app
If you need help setting up the app? Get in touch with us.
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Test a real flow
- Use a test EU VAT ID and a cross-border address.
- Confirm VAT line → €0 and see the popup with the updated total.
- Repeat with an invalid VAT ID (you should see VAT remain and no popup).
FAQs
Do I need Shopify Plus?
No. You only need the correct Tax + Markets configuration and our app enabled. (Checkout Extensibility support is recommended for the cleanest experience.)
Why this approach wins
- Standards-aligned: uses Shopify dynamic taxes—not fragile theme hacks.
- Audit-proof: validation evidence saved per order.
- Clear UX: buyers understand why the total changed.
Ready to enable it?
Download the EU Tax Exemption app and turn on the popup with our EU Tax Exemption app and make sure Shopify Taxes + Markets are configured correctly.
Stuck? Get in touch with us.