Shopify has simplified cross-border VAT management for merchants selling in the EU and UK with its expanded Shopify Tax service. The enhanced features provide more accurate VAT calculations based on customer location, automate product tax categorization, offer insights into cross-border tax liabilities, and enable B2B VAT

Accurate VAT Calculations: Ensure compliance with precise VAT rates calculated based on your customers’ exact addresses.

Automated Product Categorization: Shopify intelligently suggests the correct tax category for your products and applies the appropriate VAT rate based on local regulations. No more guessing about tricky categorizations!

Proportional Shipping Tax: When different VAT rates apply to multiple items in an order, Shopify Tax now calculates shipping tax proportionally for both EU and UK orders.

Liability Insights: Understand your tax obligations with a clear country-by-country overview of your potential VAT liabilities. Shopify analyzes your sales and compares them to government requirements, helping you stay informed.

Easy VAT Invoicing: Simplify B2B transactions by issuing VAT invoices with a single click. This feature ensures compliance and allows your business customers to reclaim VAT.

Automatic Rollout: These enhancements are being rolled out automatically to all Shopify stores selling to the EU and/or UK. Merchants using registration-based taxes will receive the updates in the coming weeks.