Is there VAT on Shopify fees?

 A little confused about VAT fees and your Shopify store? You may be wondering whether you will be charged VAT on top of the fees Shopify already charges to your account, and for good reason. Additional charges can make a big impact on your budget and affects how you are able to invest in your business. 

Let’s make it very simple: 

For those in the UK 

Short answer: No

If you are based in the UK and have provided Shopify with your VAT number, then you will not be charged VAT on top of their fees. Instead there is a 20% reverse charge treatment.

This means that Shopify does not collect VAT on your account, but you should collect VAT yourself and pay it directly to HMRC. You should add VAT charges to your products and services, and note it on the invoice.

However, you will be charged VAT fees if you have not provided Shopify with your VAT number. See below for how to do this if you have not done so already.

For those in Ireland

Short answer: Yes

If you are based in Ireland, Shopify will charge 23% VAT on top of their fees. This has been in place from June 2019.

Shopify and VAT

When it comes to setting up your Shopify store and your billing details, you should provide Shopify with your VAT number. This means that if you are based in the UK or Europe (excluding Ireland) Shopify will not charge you additional VAT fees. If you fail to provide a VAT number, Shopify will have to assume you are a customer rather than a business, and add VAT fees onto your bill. 

You can add your VAT number easily:

  • Go to your Shopify account
  • Go to Settings then Billing)
  • Add your VAT number and ‘save’ 

If you don’t have a VAT number, you can declare this here, too. 

If you are having any difficulties with Shopify fees or VAT in relation to this, get in touch with us today. 


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