What’s New at Shopify?

The reverse charge exemption fully exempts VAT on any order originating in the European Union (EU) that's shipped to a B2B customer in a different EU country or in the United Kingdom (UK).

What's changing?

There’s two exciting changes to be aware of:
1. Orders shipped from the EU to the UK will now fully exempt VAT when the buyer has the Reverse Charge (EU/UK) exemption applied to a customer or company location.
2. When applied, reverse charge will now be printed on VAT invoices [exclusive to merchants on Shopify Tax who opt in]

What do you need to do?

Be sure to check your admin locations: now that the reverse charge exemption includes the UK, the reverse charge exemption will not be applied if a merchant has a default location outside of the EU.

How do you use it?

Plus merchants can apply the reverse charge within company locations:
* Go to Companies
* Select the Company you wish to add the exemption to
* Select the Company location you wish to add the exemption to
* Tap the three dots at the top of the Customer card and select "Edit tax details"
* Change the menu underneath Tax settings to "Collect tax unless exemptions apply"
* Either search for or scroll to and check the box next to Reverse Charge (EU/UK)
* Press save

All other merchants can apply the reverse charge within customers:
* Go to Customers
* Select the customer you wish to add the exemption to
* Tap the three dots at the top of the Customer card and select "Edit tax details"
* Change the menu underneath Tax settings to "Collect tax unless exemptions apply"
* Either search for or scroll to and check the box next to Reverse Charge (EU/UK)
* Press save

If your Company or Customers already have the exemption applied, no action is needed.