VAT Number Validation at Checkout

Merchants using Shopify Tax in the European Union or United Kingdom can now enable VAT number validation at checkout to automatically apply the reverse charge exemption on eligible orders.

We will be increasing availability over the next few weeks as we roll this out.

Who this is for

This applies to merchants who use Shopify Tax in the European Union or United Kingdom and have at least one fulfillment location in the European Union. Reverse charge eligibility is based on the order's fulfillment location country, not your store address.

How to enable it

In your checkout settings, set the Company VAT number field to Optional if you sell B2B to customers in the EU or UK.

How the reverse charge exemption works

When the exemption applies, VAT is removed from the order at checkout, and the customer is responsible for reporting and paying VAT on their own tax return.

The exemption applies to:

• EU → EU shipments where the destination country differs from the fulfillment location country
• EU → UK shipments

The exemption does not apply to:

• UK → EU shipments
• UK → UK shipments

Example: You fulfill from France and ship to a customer in Ireland with a valid VAT number — the reverse charge exemption applies.

Validation and customer data

VAT numbers entered at checkout are automatically validated. The VAT numbers will be saved to the customer profile for future orders.

VAT invoices

If you enable the Company VAT number field, you may want to also enable VAT invoices so customers receive correct documentation. When the exemption is applied, the invoice includes: Reverse Charge Mechanism: Recipient responsible for VAT.

Fraud prevention

VAT number validation confirms formatting and validity at the time of check, but doesn't guarantee the customer is authorized to use the number. If you suspect fraudulent use — for example, the VAT number doesn't match the customer's company name or country — verify independently using the EU's VIES VAT number validation service and review the order before fulfilling. It's also possible that there have been too many attempts by a customer to validate a VAT number. In such cases, Shopify might enforce a rate limit to protect merchants from possible fraud.

Multiple fulfillment locations

If you have multiple locations, keep in mind that you can change which location fulfills an order, and this affects reverse charge eligibility since it's based on the fulfillment location country.