EUTaxWhat the app does
Some territories of the EU and the UK have their own tax regime: the Canary Islands (IGIC), Ceuta and Melilla (IPSI), and others outside the EU VAT territory. Shopify does not calculate those local taxes. EUTax recognises the zone from the country and postal code of the customer’s billing address and, depending on how you configure it, adds the zone’s own tax (for example IGIC 7 %) as a line under each product, or stores the exemption legend on the order. It also blocks checkout when the billing and shipping addresses are in different zones.
Set-up in 4 steps
- Add your countries and zones. Open the app from the Shopify admin, go to “Countries & zones”, pick a country and a template (for example “Canary Islands with IGIC 7 %”) or create your own zone with its postal codes.
- Check the settings. Say whether your store prices already include tax and, if needed, enter the VAT rates of your country and your product tags.
- Activate the app. Click “Activate” (14-day trial). The app creates the product “Zone tax” by itself; do not delete it.
- Place a test order with an address in that zone and check the breakdown at checkout and on the order.
Frequently asked questions
Doesn’t Shopify already remove VAT for the Canary Islands?
In our tests, with Shopify Tax enabled, Shopify did not charge VAT to a Canary Islands address. What Shopify cannot do is charge IGIC or other local taxes: that is what EUTax does. In exempt zones the app is only needed if your prices include VAT or if you want to store the exemption legend.
Which zones are included?
Editable templates for the Canary Islands, Ceuta and Melilla, and for other territories outside the EU VAT territory (Heligoland, Büsingen, Mount Athos, Livigno, Campione d’Italia). You can also create your own zones by country and postal code, or for a whole country. Templates are a starting point: confirm the regime that applies to your business with your tax advisor and check the postal codes.
Does it issue invoices?
No. EUTax changes the lines of the cart and the order, but it does not issue invoices. The invoice Shopify generates may not break out a local tax such as IGIC. Check with your accountant that your invoice shows it correctly.
Is the tax applied to shipping?
No. The tax line is added to products and rounded per unit.
Which address is used?
The billing address. If the shipping address is in another zone, checkout is blocked with a message in the buyer’s language, to avoid tax errors.
Do I need Shopify Plus?
No.
Does it cover taxes of other countries, such as US sales tax?
No. EUTax is designed for the EU and the UK. In the US and Canada, Shopify Tax calculates the tax.
What happens if I deactivate the app?
It stops applying to new carts. Existing orders do not change.
Related guides
Need help?
Write to us from the Support page.