How to Exempt VAT for EU B2B Customers on Shopify

Selling to European B2B customers on Shopify comes with one recurring question:

How do you exempt VAT correctly without breaking compliance?

EU VAT rules are stricter, Shopify stores are selling cross-border by default, and mistakes can cost real money in audits, refunds, and customer trust.

This guide explains:

• How EU VAT exemption actually works
• What Shopify supports natively
• Where manual setups break
• And which apps handle VAT exemption properly in 2026

If you sell B2B to EU customers, this is the checklist you want bookmarked.

EU VAT Exemption Explained

Under EU VAT law (updated through 2025–2026):

• B2B sales between different EU member states are VAT-exempt
• The buyer must provide a valid EU VAT ID
• VAT responsibility shifts to the buyer under the reverse charge mechanism
• VAT IDs must be validated via the official VIES system

In short: If a German business buys from a French Shopify store and provides a valid VAT ID, VAT should not be charged at checkout.

This exemption only applies when:

• Buyer and seller are in different EU countries
• The VAT number is valid at the time of purchase
• The exemption is applied before checkout, not manually after

That last point is where most Shopify stores fail.

Shopify does not validate VAT numbers automatically.

Only after this can you proceed.

Automated VAT Exemption on Shopify

Automation solves the two biggest problems:

1. Real-time VAT validation
2. Instant VAT removal at checkout

This is where dedicated VAT exemption apps come in.

Best EU VAT Exemption app for Shopify 2026

Below is a comparison of popular options used by EU merchants.

Feature	EU VAT TAX	Sufio	Milople
VIES real-time validation	✅ Cart & checkout	✅ Optional	❌
Auto VAT exemption	✅ Unlimited	⚠️ Toggle-based	⚠️ Product-based
Multi-language VAT labels	✅ 20+ EU (BTW, TVA, MwSt)	❌ Mostly English	❌ Basic
Shopify Plus support	✅ Native Cart UI	⚠️ Theme edits	❌
Pricing (starter)	$8.89/month	Invoicing add-on	$3.99/month
Primary focus	VAT exemption	Invoicing	Tax rules

Why European Merchants Choose F: VAT Exempt Europe B2B ?

F: VAT Exempt Europe B2B is built specifically for EU B2B compliance – not invoices, not accounting add-ons.

What it does well:

• Validates VAT IDs live using VIES
• Removes VAT before checkout
• Works across cart + checkout
• Supports 20+ EU languages
• Fully compatible with Shopify Plus
• No scripts, no theme hacks

From a compliance standpoint, this matters because:

• VAT exemption must happen before payment
• Validation must be timestamped
• Records must be consistent for audits

This is exactly what EU tax authorities expect in 2026.

How to Set Up F: VAT Exempt in 10 Minutes

1. Install from the Shopify App Store
2. Enable VAT ID field at cart/checkout
3. Activate VIES validation
4. Configure auto-exemption rules
5. Test with a real EU VAT number

That’s it.
No scripts. No manual tagging. No broken flows.

Common EU VAT Mistakes Shopify Stores Make

• Exempting VAT after checkout
• Not validating VAT IDs
• Allowing invalid VAT numbers
• Applying exemptions to same-country orders
• Missing VAT info on invoices

Every one of these can trigger penalties in an audit.

Final Recommendation

If you:

• Sell B2B in Europe
• Want VAT compliance without admin overhead
• Care about clean checkout experience
• Want to be audit-ready in 2026

Then automated VAT exemption is the only sustainable option.

Manual setups break.
Theme hacks don’t scale.
Compliance mistakes are expensive.

Apps like F: VAT Exempt Europe B2B exist because Shopify alone doesn’t handle EU VAT properly.