Testing it yourself
A two-minute test as a business buyer, and why VAT stayed on if it did.
The last step of the setup guide is to see VAT come off once, as a buyer would. You don’t need to place an order: the step ticks itself as soon as VAT comes off at checkout.
What you need
- A customer account in your store with an address in another EU country than your store’s. Reverse charge is for cross-border sales, so a buyer in your own country always pays VAT.
- A valid VAT ID from that country, such as one from an EU supplier’s invoice. Your own won’t work: it’s from your country.
- The VAT ID field on in your theme: see Getting started.
The test
- Sign in to your store as that customer.
- Add something to the cart and enter the VAT ID in the cart drawer or on the cart page. The field confirms it’s valid and that VAT will be removed.
- Go to checkout and check that VAT reads 0. You can stop there.
The cart total itself doesn’t change: VAT comes off at checkout, where Shopify recalculates tax. Shopify’s own VAT ID check works the same way.
If you do place the order, it appears in VAT records within a minute, as Reverse charge with tax 0 and its VIES reference.
If VAT stayed on
The setup guide on Home says why your last check didn’t count:
- Your last check was from your own country: that’s correct, VAT stays on. Try a VAT ID from another EU country.
- Your last check wasn’t a valid EU VAT ID: VIES didn’t confirm it, or it isn’t in the format its country issues. Try a registered VAT ID from another EU country. A number that works for domestic VAT but was never registered for cross-border trade is the usual cause.
- You weren’t signed in as a customer: Shopify removes VAT only for a signed-in customer. Sign in and try again.
- Your last check couldn’t finish: VIES, or the member state’s own system behind it, didn’t answer. Individual countries go down for an hour at a time. Try again in a moment.
If VAT reads 0 but the price didn’t drop, the market’s Tax display is "Show as included". Set it to "Dynamic tax display" in Markets.
If none of these fits, check that Shopify charges VAT to that country at all: Shopify’s Settings → Taxes and duties.
Skipping the test
Skip for now takes the step out of the way and marks it "Not tested yet". It ticks itself later the first time a real buyer’s VAT comes off.