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EU Tax exemption

Frequently Asked Questions (FAQ)

Written By Floris de Vries

Last updated 8 months ago

This FAQ answers the most common questions about the EU Tax Exemption App, based on real support requests.

If something doesn’t work as expected, it is almost always related to Shopify tax settings, market configuration, or pricing logic — not the VAT validation itself.


VAT validation & general behavior

This usually happens due to Shopify tax or market settings, not because of the app.

Check the following:

  • The email address used during VAT validation must match the email used at checkout

  • Your Market tax display setting is correct:

    • Draft Order Logic → Show as included

    • Standard Checkout Logic → Dynamic pricing

  • You are not using fixed market prices (custom prices per country)

If you use fixed prices per market, Shopify treats those prices as final and will not recalculate VAT.

This is expected behavior in some setups.

  • Shopify may set VAT to 0 without recalculating prices if:

    • Fixed market prices are used

    • VAT-exclusive pricing is configured incorrectly

    • Draft Order Logic is disabled while prices are VAT-inclusive

If you sell VAT-inclusive prices and need reliable VAT removal, enable Draft Order Logic.

This is default behavior.

  • VAT exemption only applies to cross-border EU transactions

  • VAT numbers from the same country as your store are validated but not exempt

This follows EU VAT reverse-charge rules.

Yes — this is exactly how the app works by default.

  • Foreign EU VAT numbers → validated and VAT removed

  • Domestic VAT numbers → validated, but VAT remains

Draft Order Logic vs Standard Checkout Logic

Draft Order Logic

  • Creates a Shopify Draft Order after VAT validation

  • Redirects customers to a draft order invoice

  • Ensures correct VAT removal even with complex setups

Standard Checkout Logic

  • Uses Shopify’s native checkout

  • Relies on Shopify tax settings and cart attributes

  • Best for VAT-exclusive pricing

✅ Recommended if you:

  • Sell VAT-inclusive prices

  • Use multiple Shopify Markets

  • Use dynamic pricing (no fixed market prices)

  • Want maximum reliability

❌ Do not use if:

  • You sell VAT-exclusive prices

  • You need standard Shopify checkout behavior only

You must use Standard Checkout Logic.

Draft Order Logic will recalculate prices, which breaks VAT-exclusive pricing setups.

Yes.

Enable “Require VAT validation before checkout” in General Settings.

This:

  • Disables the checkout button

  • Prevents checkout until VAT is validated

  • Works without Shopify Plus

Shopify plans & checkout limitations

Shopify only allows checkout customization on Shopify Plus.

  • Non-Plus → app works in cart or cart drawer

  • Plus → use EU Tax Exemption Plus for checkout support

No. This is a Shopify platform limitation.

Markets, pricing & taxes

This is a Shopify limitation.

  • Fixed market prices are treated as final

  • VAT cannot be recalculated or removed

Solution:

  • Remove fixed prices

  • Use dynamic pricing

  • Or enable Draft Order Logic

Check if those countries are:

  • Set up as separate Markets

  • Using a different tax display setting

Each Market must be configured correctly.

VAT exemption only applies to intra-EU transactions.

If goods are shipped from:

  • The US or another non-EU country → VAT reverse charge does not apply

Solution:

  • Use an EU fulfillment location

  • Or ship from within the EU

Cart & theme issues

If your theme uses a cart drawer, you must:

  • Add the app to the Theme Editor

  • Add the <div id="ooTaxExemption"></div> snippet manually to the cart drawer code

Recommended:

  • Add the app to both cart page and cart drawer

Common causes:

  • Theme updates removed the app block

  • Missing app embed

  • Custom cart or bundle logic interfering

Re-enable the app block in the Theme Editor.

This is usually caused by:

  • Theme JavaScript issues

  • Conflicts with bundle or cart apps

In these cases, the theme developer must resolve the issue.

Customers, emails & data

Yes.

  • Shopify identifies customers by email address

  • Once a customer is marked tax-exempt, they remain so

You can manually revert this in the Shopify customer profile.

Yes.

Each email must complete VAT validation separately.

Depending on settings, VAT data is stored as:

  • Order note

  • Order tags

  • Customer tags

  • Cart attributes

  • Draft order metadata

  • Customer metafields

Yes.

Enable “Add tag to customer after VAT validation”.

Common use cases:

  • B2B identification

  • Payment method restrictions

  • ERP integrations

Translations & text

Translations:

  • Are empty by default

  • Must be explicitly saved at least once

Use “Apply all default translations for all languages” to initialize them.

Compatibility & limitations

Standard Checkout Logic is generally more compatible with bundle apps.

Most bundle apps rely on Shopify’s standard checkout flow to apply pricing and discounts. Using Standard Checkout Logic ensures better compatibility and more predictable pricing behavior.

Draft Order Logic may conflict with bundle apps that modify prices dynamically or apply discounts late in the checkout process. This is a Shopify limitation.

No.

Use the Shopify Plus version for checkout-based logic.

Still stuck?

If something still doesn’t work:

  1. Double-check Markets and tax display settings

  2. Verify pricing logic (inclusive vs exclusive)

  3. Test with a real EU VAT number

  4. Contact support with collaborator access


Final note

Most issues are configuration-related, not bugs.
Once set up correctly, the app runs reliably with no daily maintenance.