Fedev — EU VAT & VIES
EU reverse charge on Shopify, without Shopify Plus
When an EU business buyer from another member state enters a valid VAT number, Fedev — EU VAT & VIES removes VAT from their order and adds the reverse-charge note to it. It works on every Shopify plan — Basic, Grow and Advanced — with no Shopify Plus and no Shopify Tax subscription. Shopify’s own VAT number field needs Shopify Tax and works for guest checkouts; how the two compare.
When VAT comes off
The app acts in exactly one case: a valid VAT number from an EU member state other than your store’s. That is the cross-border B2B supply where, under Article 196 of the EU VAT Directive, the buyer accounts for the VAT instead of you.
| Buyer | VAT number | What happens |
|---|---|---|
| Business in another EU member state | Valid | VAT removed, reverse-charge note added |
| Business in your own country | Valid | VAT stays — domestic B2B |
| Anyone | Invalid | VAT stays |
| Anyone | VIES did not answer | VAT stays, order flagged “Needs review” |
| Consumer | None entered | Shopify’s tax calculation untouched |
In every case except the first, the app leaves Shopify’s own tax calculation exactly as it was.
How the VAT comes off
The app does not keep its own VAT rates and does not recalculate tax. It uses Shopify’s native EU reverse-charge exemption on the customer, so Shopify itself removes the VAT it calculated — line by line, at the rate it applied. That is also why reduced-rate products come out right.
Each reverse-charged order carries the note “Reverse charge — VAT to be accounted for by the customer (EU VAT Directive 2006/112/EC, Article 196)” in its order details, along with the buyer’s VAT number and the VIES consultation reference.
Checks that keep it honest
- Tax mismatch. If the reverse charge was decided but the order still carries VAT, the order is flagged rather than left for your accountant to find.
- Stale exemptions. An exemption is a standing flag on the customer. If a customer has not had a fresh VAT check for 45 days, the exemption is removed, so it never outlives the evidence behind it.
Setup
Turn reverse charge on, switch on the VAT field in the theme editor — an app block for the cart page, an app embed for the cart drawer — and optionally add your own VAT number. There is no rates table to configure.
Questions
Do I need Shopify Plus?
No. The app works on Basic, Grow and Advanced. It does not need a Shopify Tax subscription either.
Does the reverse charge work for guest checkout?
VAT number validation works for every buyer, signed in or not. Removing the VAT automatically needs a signed-in customer, because Shopify's tax exemption attaches to a customer account and there is no cart-level equivalent. A guest with a valid cross-border number is recorded and flagged in your VAT records, so you can refund the VAT manually if you choose.
What about a business in my own country?
VAT stays on. A valid VAT number from the store's own country is a domestic B2B sale, not a cross-border one, so the reverse charge does not apply.
Does it work with tax-inclusive (gross) pricing?
Only with destination-based tax calculation turned on ("calculate taxes based on customer location"). The app relies on Shopify's own customer tax exemption, which needs it. A store that shows one flat gross price everywhere is not a fit.
Why does the cart total not change straight away?
Shopify recalculates tax at checkout, not in the cart. The cart confirms the number is valid and that VAT will be removed; the lower total appears at checkout.
Is this tax advice?
No. The app applies the reverse-charge rule and keeps the evidence, but you stay responsible for your VAT compliance. Check with your accountant.