How to set up UK and EU taxes in Shopify (including IOSS)
To set up taxes in Shopify, register your UK VAT number under Settings, then Taxes and duties, choose to include tax in prices, and add product overrides for reduced or zero rates. For EU sales, decide whether to register for IOSS for parcels up to €150, add your IOSS number in Shopify, and set up duties for higher-value orders.
By Abdullah Ashraf, Shopify expert · Last updated: October 2026
Quick summary
- Enter your UK VAT number and include VAT in prices.
- IOSS lets you charge EU VAT at checkout for parcels up to €150.
- Check the current Shopify admin as menu names change.
UK VAT
- Go to Settings, then Taxes and duties.
- Select the United Kingdom and add your VAT number.
- Turn on including tax in prices.
- Add overrides for 5% or 0% products.
EU sales and IOSS
For consignments up to €150, IOSS lets you collect EU VAT at checkout so customers don't pay on delivery. You need an IOSS registration, usually through an intermediary for UK businesses. Add the number in Shopify's EU tax settings.
Higher-value orders and duties
For orders over €150, customs duties may apply. Show duties and import taxes at checkout where available, or clearly tell customers they may pay on delivery. See customs and duties.
Get advice
Tax rules are detailed and change. Check your setup with an accountant.
Frequently asked questions
Do I need IOSS?
It's optional, but it improves the customer experience for low-value EU parcels.
What about Northern Ireland?
Different rules can apply. See Northern Ireland shipping.
Official sources
- Register for VAT (GOV.UK)
- One Stop Shop and Import One Stop Shop (GOV.UK)
- Taxes on Shopify (Shopify Help Center)
Checked September 2026. Rules change, so always check the latest official guidance.
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