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
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
1. Choose the Correct Cross-Border VAT Approach (EU)
In Shopify, EU cross-border VAT collection is typically handled in one of the following ways:
Option A: OSS (One Stop Shop) Registration
Use this option if:
You sell to customers in other EU member states
Your cross-border B2C sales exceed €10,000 per year
You file a single VAT return via OSS in your home country
With OSS:
You charge VAT based on the customer’s country rate
You 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 EUR or less per year
You report VAT only in your home country
Under this regime:
You charge your home country’s VAT rate
You submit VAT to your local tax authority
⚠️ If you exceed the €10,000 threshold, you must switch to OSS.
2. Set Up OSS or Micro-Business VAT in Shopify
To configure cross-border VAT:
Go to Shopify Admin
Click Settings → Taxes and duties
In Regional settings, click European Union
In Collect VAT cross-border, click Collect VAT
Then choose one of the following:
Collect using a One Stop Shop (OSS) registration
Select your OSS country
Enter your VAT number
Collect using your home country registration
Select your home country
Enter your VAT number
Click Collect VAT
3. 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, you exceed the €10,000 threshold), you must update your registration type.
⚠️ Important:
If you start under the micro-business regime and later need additional VAT registrations in other EU countries, you must switch your registration type (for example, to OSS). Additional EU registrations are not supported under the micro-business regime.
To Edit or Add Registrations
Go to Shopify Admin
Click Settings → Taxes and duties → European Union
In Collect VAT cross-border
Click … (three dots) to edit
Or click Collect VAT / Collect in another location to add a new registrationClick Save
📌 Compliance Reminder
Your Shopify EU VAT configuration must always match:
Your official VAT registrations
Your OSS enrollment (if applicable)
Your annual cross-border turnover
Incorrect configuration may result in:
Charging the wrong VAT rate
Filing incorrect VAT returns
Non-compliant sales.
If you are unsure which regime applies to your business, consult your accountant or tax advisor before updating your settings.