š” Collecting Tax Before Your VAT Number Is Issued
Until your VAT number is issued, you cannot show VAT separately on invoices.
However, you are still required to pay VAT on all UK sales from your chosen VAT registration date.
To cover this, we recommend increasing UK customer prices by 20% from your registration date.
ā If you have not yet received your VAT number from HMRC, please do not follow the below process to enable tax collection in Shopify
ā Charging VAT After Your VAT Number Is Issued
Once you receive your VAT number, you can revert to your original pricing and then add a 20% VAT line on invoices.
The overall price customers pay should remain the same.
Your VAT number must appear on all invoices going forward.
š§± Step 1: Setup Tax Region
1. Navigate to your Shopify account
2. Click "Settings"
3. Click "Taxes and duties"
ā” Step 2: Setup United Kingdom VAT rates
1. Click "United Kingdom" to setup UK VAT rates.
2. Click "Collect VAT"
3. Click "Collect VAT" and enter your GB VAT number.
