If you sell to customers in multiple EU countries — either through your online store or via Shopify POS using the Ship to customer functionality — you must correctly configure your EU cross-border VAT settings in Shopify.
VAT treatment for EU cross-border sales depends on your total annual cross-border B2C turnover and whether you are registered for OSS (One Stop Shop).
All EU VAT settings can be managed in: Shopify admin > Settings > Taxes and duties > European Union
Choose the correct cross-border VAT approach
In Shopify, EU cross-border VAT collection is handled in one of two ways.
Option A: OSS (One Stop Shop) registration
Use this option if your cross-border B2C sales exceed €10,000 per year and you file a single VAT return via OSS in your home country. With OSS, you charge VAT based on the customer's country rate and report all EU cross-border sales in one OSS declaration.
Option B: Micro-business (home country) registration
Use this option if your total cross-border EU sales are €10,000 or less per year and you report VAT only in your home country. Under this regime, you charge your home country's VAT rate and submit VAT to your local tax authority.
If you exceed the €10,000 threshold, you must switch to OSS.
Set up OSS or micro-business VAT in Shopify
Go to Shopify admin > Settings > Taxes and duties.
In Regional settings, click European Union.
In Collect VAT cross-border, click Collect VAT.
Choose one of the following:
Collect using a One Stop Shop (OSS) registration: select your OSS country and enter your VAT number.
Collect using your home country registration: select your home country and enter your VAT number.
Click Collect VAT.
Keep your EU VAT registrations up to date
You can add, edit, or remove VAT registrations at any time. If your VAT situation changes — for example, if you exceed the €10,000 threshold — you must update your registration type.
If you start under the micro-business regime and later need additional VAT registrations in other EU countries, you must switch your registration type to OSS. Additional EU registrations are not supported under the micro-business regime.
To edit or add a registration:
Go to Shopify admin > Settings > Taxes and duties > European Union.
In Collect VAT cross-border, click the three-dot icon (⋯) to edit an existing registration, or click Collect VAT / Collect in another location to add a new one.
Click Save.
Compliance reminder
Your Shopify EU VAT configuration must always match your official VAT registrations, your OSS enrollment if applicable, and your annual cross-border turnover. An incorrect configuration may result in charging the wrong VAT rate, filing incorrect VAT returns, or non-compliant sales.
If you are unsure which regime applies to your business, consult your accountant or tax advisor before updating your settings.