VAT Setup in Shopify: Complete Guide for Dutch Webshops

A clear, step-by-step guide for configuring VAT in Shopify as a Dutch merchant. Learn how to enter your VAT number, activate OSS for EU sales, categorize products for correct VAT rates, enable prices including VAT, and test your setup. Includes tips for B2B VAT exemption.

Selling products through a Shopify store? Then correctly configuring your VAT is essential—both for compliance with Dutch/EU tax rules and to ensure customers always see accurate pricing. This guide walks you through all steps.

Step 1: Find the VAT settings in Shopify

In your Shopify admin, go to SettingsDuties and Taxes.

This is where all tax regions—including EU VAT—are managed.

Step 2: Set up VAT for the European Union

Open the European Union region. Shopify usually preselects the country you’re based in.

For the Netherlands, click Collect VAT, then enter your Dutch VAT number.

Shopify validates it; a green checkmark confirms VAT is activated for NL.

Cross-border VAT within the EU

Enable VAT collection and choose between:

Option 1: One Stop Shop (OSS)

Required once your annual EU cross-border B2C sales exceed €10,000.

You charge VAT based on the buyer’s country, but file it centrally via the Dutch OSS portal.

Option 2: Home country VAT

If you remain below the €10,000 threshold, you may charge Dutch VAT for all EU sales.

For most scaling shops, OSS is the correct choice.

Step 3: Automatic invoice generation

Scroll down in the same EU tax section to enable automatic invoice creation.

You can upload your logo and Shopify will generate compliant invoices for each order.

Save your changes.

Step 4: Categorize products for correct VAT rates

Shopify applies VAT rules using product categories.

If any items are uncategorized, Shopify alerts you.

Assign the appropriate category to each product—vital for reduced VAT rates (e.g., 9% for books, food, etc.).

Step 5: Show prices including or excluding VAT

Go back to Duties and Taxes and scroll to Price display.

For consumer shops (B2C), turn on Display prices including VAT.

Customers expect the listed price to be the final price.

Step 6: Test your VAT configuration

Perform a test checkout:

  • Add a product to cart
  • Try different shipping countries

VAT should adjust automatically:

  • Germany → 19%
  • Netherlands/Belgium → 21%

Bonus: VAT exemption for B2B buyers

If you sell to EU businesses, they may qualify for VAT reverse-charge.

Shopify doesn’t support VAT validation natively, but dedicated apps can:

  • Validate EU VAT numbers (VIES)
  • Apply VAT exemption automatically

You can try the Tax Exemption Easy App for Shopify here