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Shopify - Set up VAT collection for the UK

Describes the process of setting up VAT collection from Shopify Store for the UK region.

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Written by Amee Baldwin

💡 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.

❌ If you have not yet received your VAT number from HMRC, please do not follow the below process to enable tax collection in Shopify

✅ 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.

đŸ§± Step 1: Setup Tax Region

1. Navigate to your Shopify account

2. Click "Settings"

3. Click "Taxes and duties"

⚡ 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.


✅ You're All Set!

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