Shopify questionAnswer4 min read

Does Shopify Charge VAT on Its Fees in the UK?

Shopify bills UK stores from Ireland, and whether VAT shows on your bill depends on your VAT number. Here is how it works and what to give your accountant.

Checklist card: billed from Ireland, VAT number added, reverse charge applied, not guessing from forum posts
Your billing VAT number decides what shows on your Shopify bill.

Key takeaways

  • UK stores are billed by Shopify International Limited in Ireland, and Shopify's terms say all fees are quoted before tax.
  • If you are VAT registered and add your VAT number in Settings > Billing > Billing profile, you are treated as a business customer and normally account for VAT on the fees yourself under the reverse charge.
  • If you haven't added a VAT number, Shopify may add VAT to your bill based on your billing address. The tax line on each bill shows which treatment applies.
  • Your billing VAT number and the VAT you charge customers are set in two different places in the admin. Most UK confusion comes from mixing them up.
Who it is for
UK store owners and their bookkeepers
Time needed
5 minutes to read
What you need
Your Shopify bill and VAT number

Shopify's fees are quoted before VAT, and whether VAT appears on your bill depends on whether you've given Shopify a VAT number. A VAT-registered UK business that adds its number is normally treated as a business customer and accounts for the VAT itself under the reverse charge. Without a number on file, Shopify may charge VAT on the bill based on your billing address.

I build and run stores for UK clients, and this is one of the first billing questions I'm asked after launch. The rules below were checked on Shopify's terms, help.shopify.com and gov.uk on 7 November 2026. This is general information, not tax advice: confirm your own position with your accountant.

Who bills a UK store, and why it matters

Shopify's terms of service name Shopify International Limited, incorporated in Ireland, as the contracting party for Europe, which includes the UK. So for VAT purposes, your Shopify subscription is a service bought from a supplier outside the UK.

The terms also say all fees are exclusive of taxes. Where Shopify charges tax, it uses the rates that apply to your billing address. Where it doesn't, you are responsible for working out whether tax is due and paying it yourself.

With and without a VAT number

Your situationOn your Shopify billWhat you do
VAT registered, number addedNormally no VAT lineAccount for it under the reverse charge
VAT registered, no number addedVAT may be addedAdd your number to stop it
Not VAT registeredVAT may be addedTreat it as part of the cost

HMRC's place of supply guidance (VAT Notice 741A) explains the reverse charge: when the place of supply is the UK, the supplier belongs outside the UK and the customer is a UK business, the UK business accounts for the VAT. In practice you record VAT on the fee as if you'd charged it, and reclaim the same amount as input tax. For a fully taxable business, the two cancel out.

Check the bill, not a forum post: advice online about VAT on Shopify fees conflicts, partly because rules changed after Brexit. Open Settings > Billing, click a past bill, and look at the tax line. That shows what Shopify is actually doing for your account.

How to add your VAT number to Shopify billing

  1. Open billing. From your Shopify admin, go to Settings > Billing.
  2. Open the billing profile. Click Billing profile.
  3. Add the number. In the VAT number section, click Add VAT number, enter it, click Confirm, then Save.
  4. Wait for verification. Shopify checks the number and changes its status from pending to verified.

This number is for Shopify's bill to you. It doesn't set up VAT on your sales. That is a separate setting under Settings > Taxes and duties.

Shopify VAT invoices: for you and for your customers

Your invoice from Shopify: every bill is listed under Settings > Billing in Past bills, each with a nine-digit bill number. Give these to your bookkeeper as the supplier invoices for your Shopify costs.

Invoices for your customers: gov.uk says you must use VAT invoices when both you and your customer are VAT registered. Most consumers don't need one. Business buyers will ask, so set up an invoice template that shows your VAT number and the VAT amount. Shopify Payments fees are a separate matter: review them in the payouts activity report, which breaks down transactions, fees and payouts.

When you need to be VAT registered at all

Gov.uk sets the VAT registration threshold at £90,000. You must register if your taxable turnover over the last 12 months goes above it, or if you expect it to go above it in the next 30 days. The standard VAT rate is 20%. You can register voluntarily below the threshold, which lets you reclaim VAT on business costs but means charging VAT on your sales. My VAT guide for Shopify stores covers the sales side in full.

Other countries

EU / Netherlands: Shopify's help center says European stores provide a VAT number or confirm they don't have one, in the same billing profile. Stores in Ireland are charged 23% Irish VAT on relevant fees, because Shopify bills from Ireland. Dutch and other EU businesses should check their own bills.

US and Australia: different rules apply, set out on Shopify's billing tax pages for North America and for Australia and New Zealand. See GST for Shopify stores in Australia for the sales side there.

What to do next

  1. Open your last Shopify bill and check the tax line.
  2. Add your VAT number in the billing profile if you're registered and it's missing.
  3. Tell your accountant that Shopify bills from Ireland, so they record the fees under the reverse charge.
  4. Check your sales tax setup separately under Settings > Taxes and duties, and review every Shopify fee so you know what each bill line is.

Free tools

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Frequently asked questions

Does Shopify charge VAT on subscriptions in the UK?

Shopify's fees are quoted before tax. If you're VAT registered and have added your VAT number to your billing profile, you normally account for VAT yourself under the reverse charge. Without a number, VAT may be added to your bill. Check the tax line on a past bill to see your treatment.

Where do I add my VAT number in Shopify?

For Shopify's bill to you, go to Settings > Billing > Billing profile and click Add VAT number. For charging VAT to your customers, use Settings > Taxes and duties. They are separate settings.

Where can I find my Shopify VAT invoice?

Go to Settings > Billing and open a bill in the Past bills section. Each bill has a nine-digit number starting with #, and these serve as the supplier invoices for your Shopify costs.

Which Shopify company bills UK stores?

Shopify's terms of service name Shopify International Limited, a company incorporated in Ireland, as the contracting party for Europe, including the UK.

Do I need to give customers VAT invoices?

Gov.uk says VAT invoices are required when both you and your customer are VAT registered. Consumers usually don't need one, but business buyers will ask, so set up a template that shows your VAT number and the VAT amount.

Can I reclaim VAT on Shopify fees?

If you're VAT registered and the fees are reverse-charged, you record the VAT and reclaim it in the same return, so for a fully taxable business it nets to zero. Your accountant can confirm how it applies to your returns.

Sources

  1. Terms of Service, Shopify
  2. Managing VAT requirements for Shopify billing in European stores, Shopify Help Center
  3. Place of supply of services (VAT Notice 741A), HM Revenue & Customs, GOV.UK
  4. How VAT works: when to register, GOV.UK
  5. VAT rates, GOV.UK
  6. Invoices: what they must include, GOV.UK
Ashraf Siddik

Written by Ashraf Siddik

I'm a Shopify developer and CRO specialist. I have built and improved Shopify stores since 2018, completed more than 1,000 projects, and hold a 4.96 average rating across 719 client reviews.

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