FAQ
Guest checkout, tax-inclusive prices, shipping VAT and the other questions merchants ask most, with what’s Shopify’s limit and what’s the app’s.
Some of what looks like the app not working is how Shopify handles tax. Each answer says which it is.
Does VAT come off for guest checkout?
No, and that’s Shopify’s limit. The app checks a guest’s VAT ID like anyone else’s, but removing VAT uses Shopify’s own customer tax exemption, which can only attach to a signed-in customer; Shopify has no cart-level equivalent. A guest with a valid VAT ID is asked to sign in. If they don’t, they pay VAT, and the order lands in Needs review as "VAT charged — guest" so you can refund the VAT in the order if you choose.
Why does the cart still show the full price?
VAT comes off at checkout, not in the cart. The field confirms the VAT ID is valid and that VAT will be removed; Shopify recalculates tax at checkout. Shopify’s own VAT ID check works the same way.
VAT reads 0 at checkout, but the price didn’t drop
The market’s Tax display is "Show as included", or the market has fixed prices. Shopify then keeps the full price for a buyer with a valid VAT ID, so they pay the VAT anyway. The app works with "Dynamic tax display" and "Show as line item": set it under Markets → the market → Taxes and duties → Tax display. Such an order is marked Needs review with "VAT 0, but the price didn’t drop", and the setup guide on Home names the markets set this way.
Why is there still VAT on shipping?
When reverse charge was decided but any tax is left on the order, tax on shipping alone included, the order lands under Tax mismatch in VAT records. A shipping tax or a mixed cart is the usual cause: open the order and check its lines. Refund the VAT in the order, then press Mark refunded on the record’s page.
A buyer with a valid VAT ID paid VAT
Usually they checked out as a guest. If the buyer is in your own country, that’s correct: reverse charge is for cross-border sales only, and the record says Domestic B2B. Otherwise the order is in Needs review in VAT records, and its page says why: VIES didn’t answer, or this month’s free validations had run out.
What happens when VIES is down?
Individual countries’ VAT systems go down for an hour at a time, and that’s normal. The app retries, then lets the order through with VAT on it rather than telling a real business its VAT number is no good. The order is flagged in Needs review so you can check the number on VIES and refund the VAT if it’s valid.
What happens when the free validations run out?
New VAT IDs aren’t checked until the 1st of next month. Those buyers pay VAT, and their orders land in Needs review. Numbers already checked in the last 24 hours keep working, and nothing is blocked for the buyer. Starter, under Plan, removes the cap.
Does it show prices with and without VAT?
No. The storefront shows one price, the way your theme and Markets settings show it. A business buyer sees VAT come off at checkout.
The VAT line doesn’t match the discount on a reduced-rate item
On a tax-inclusive reduced-rate product, the price buyers see is derived at your country’s standard rate, so the real drop under reverse charge is larger than the VAT line suggests. That comes from Shopify’s tax calculation and happens with or without the app.
Does it work for stores outside the EU?
Not yet. The store’s own country has to be an EU member state: reverse charge depends on where the seller is.
Does it need Shopify Plus?
No. It works on every Shopify plan.
Is this tax advice?
No. The app applies VAT logic and keeps records from VIES, the official source. Check your filings with your accountant.