Before configuring taxes in Shopify, you must determine whether your business is required to charge VAT (or sales tax).
There are two main scenarios:
1. Businesses that collect VAT (Standard VAT Regime)
If your business is registered for VAT:
You must charge VAT on taxable sales.
You must declare and remit VAT to the tax authorities.
You must display VAT correctly on receipts.
You must enter your VAT number in Shopify.
2. VAT-Exempt Businesses (e.g., French “Franchise en base de TVA”)
If your business benefits from a VAT exemption regime:
You must not charge VAT on sales.
You cannot deduct VAT on purchases.
Your receipts will automatically include the required legal mention (in France:
“TVA non applicable, art. 293 B du CGI.”)You should not activate VAT collection in Shopify.
If you are unsure which regime applies to your business, consult your accountant or local tax authority before configuring taxes.
Steps to Configure Tax Collection in Shopify
In case your business collects VAT, you must:
From Shopify Admin, go to Settings → Taxes and duties → Tax regions → Select European Union.
In the VAT collection section → Collect VAT in an EU country
Select France
Introduce your VAT number (Example: BE9999999999)
Click Collect VAT
In case your business is VAT- Exempt, you should not do anything on this section, leaving it blank.
Important Compliance Note
If you are VAT-registered → VAT collection must be activated in Shopify.
If you are VAT-exempt → VAT collection must not be activated.
Your Shopify tax configuration must always match your official tax status.
Incorrect VAT configuration may result in:
Charging VAT when you are not allowed to
Failing to charge VAT when required
Non-compliant invoices or tax reports
If your VAT status changes (for example, exceeding exemption thresholds or opting into VAT), you must immediately update your tax configuration in Shopify.