Correct tax configuration in Shopify is an essential requirement to guarantee the validity of invoicing and compliance with tax obligations. Proper parameterization ensures that the applied tax rates match those required by current regulations and that tax filings are compliant with the authorities.
In particular, within the framework of fiscal control systems such as Verifactu (state-level in Spain) and TicketBai(mandatory in the Basque Country), incorrect tax configuration results in the automatic rejection of issued invoices. If an invoice is rejected, it has no fiscal validity. This is why rigorous configuration aligned with applicable tax regulations is so important.
Importance of Tax Configuration in Shopify
European and Spanish VAT regulations require the correct application of tax rates based on the buyer’s location, the nature of the goods, and the company’s tax regime.
Shopify’s integration with systems such as Verifactu and TicketBai requires that taxes are properly configured in Shopify and accurately reflected in every electronic invoice.
An error in this configuration is not merely an administrative irregularity: it renders the invoice invalid and therefore prevents it from being recognized for tax purposes.
Configuration Procedure in Shopify
Go to Settings → Taxes and duties in Shopify.
Under Tax regions, select European Union.
In the VAT collection section, select Spain.
Enter your VAT ID number (NIF), whether you are a company or self-employed. It must include the prefix ES(e.g., ESB12345678).
In the Collect VAT on cross-border sales section, configure your business for online store sales:
OSS regime: If your intra-EU sales exceed €10,000 annually, you must register under the OSS regime and apply VAT based on the customer’s country of destination.
Micro-business exemption: Applies to micro-businesses located in an EU country with less than €10,000 per year in sales to other EU countries.
Legal Consequences of Rejection
Nullity of issued invoices: they have no fiscal or legal effect.
Inability to deduct or offset VAT on those transactions.
Administrative and financial penalties in accordance with the General Tax Law.
Increased risk of inspection and additional requirements from the authorities.