What’s New at Shopify?

Managing VAT is complicated, which is why we’re committed to making it better. Shopify Tax is bringing brand new features to your admin that will make it easier to collect the right amounts at the right time, and know where your business is liable.

New

Enhanced calculations
Stay confidently compliant selling across borders knowing that Shopify Tax is accurately calculating VAT rates based on your customers’ exact address.

Smart categorization
Is a Jaffa Cake a cake or a biscuit? As a society, we may never be able to agree on the answer, but at Shopify, we can help you categorize your Jaffa Cake for tax purposes. Shopify helps you by suggesting the proper category for your products and then automatically applies the right VAT rate based on local rules.

When rates differ on multiple line items, Shopify Tax will now tax shipping proportionally on each order in both the EU and UK.

Liability Insights
Know where you’re liable with a country-by-country overview of your tax obligations. Liability insights analyzes your store’s sales and compares it to government requirements to let you know where and how you may be required to collect VAT.

VAT invoices
If you sell taxable goods or services to VAT-registered businesses or individuals in other EU countries, you have an obligation to provide a VAT invoice. With the tap of a toggle, Shopify Tax will issue VAT invoices enabling you to stay compliant with local laws and your B2B buyers to reclaim any VAT paid.

Learn more
Shopify Tax is currently being released to all Shopify stores that sell to the European Union and/or United Kingdom. Merchants using registration-based taxes will automatically receive these enhancements in the coming weeks. Learn more about these new features in the Shopify Help Center.