Shopify VAT number validation at checkout for B2B

Trade buyers in Europe expect to enter a VAT number and see VAT come off the order. On many Shopify stores we've looked at, that still happens after checkout. Someone checks the number by hand, refunds the VAT or reissues an invoice, and the buyer waits.

Shopify now handles it at checkout. Merchants using Shopify Tax in the EU or the UK can turn on VAT number validation. It applies the reverse charge exemption automatically on eligible orders. You need at least one fulfilment location in the EU. It covers EU-to-EU shipments between different countries and EU-to-UK shipments, but not UK-to-EU or UK-to-UK.

What changed?

Shopify's changelog entry on VAT number validation, dated the 25th of February 2026, sets out how it works.

• A B2B customer enters their VAT number at checkout.
• Shopify validates it automatically and saves it to the customer profile.
• On eligible orders, the reverse charge exemption removes VAT from the order.
• You can turn on VAT invoices, which state "Reverse Charge Mechanism: Recipient responsible for VAT."

To activate it, set the Company VAT number field to Optional in your checkout settings for B2B customers. Shopify is rolling it out over the following weeks, so it may not appear in every admin straight away.

Which shipments does it cover?

This is the part to read twice. Eligibility depends on where the order ships from and where it goes.

• EU to another EU country. Covered. The fulfilment country and the destination country must be different.
• EU to the UK. Covered.
• Within one EU country. Not covered, because the fulfilment and destination countries are the same.
• UK to the EU. Not covered.
• UK to the UK. Not covered.

A Belgian wholesaler fulfilling from Belgium to a trade buyer in France or the Netherlands fits the first case. A UK brand shipping from a UK warehouse to an EU trade buyer doesn't fit any covered case. Tax rules around the reverse charge have their own detail, so confirm your own situation with your accountant before you rely on it.

What does validation not do?

Shopify is clear that validation confirms a number's format and validity. It doesn't guarantee the customer is authorised to use that number.

For most orders, that's fine. For anything that looks unusual, Shopify suggests checking the number yourself in the EU's VIES service. A large first order from a new account with a VAT number from an unexpected country is worth a second look.

If you're on Shopify Plus, you can pair this with a review step. Our note on B2B order review rules covers sending orders like that to draft automatically. Rules can use conditions such as order value or customer attributes.

Who should turn it on?

This matters most for three kinds of business.

• Wholesalers based in the EU selling to trade buyers in other EU countries.
• EU-based brands with a trade channel into the UK.
• Businesses with an EU fulfilment location that sell to trade buyers across borders.

If you sell B2B from Belgium, this is likely to be relevant. Our Belgium page covers how we work with Belgian and Benelux businesses, including stores that trade in EUR and serve Dutch, French and English content.

If you're UK-based and ship only from the UK, this change doesn't cover your EU trade orders. Your current process stays in place. Cross-border setup has several moving parts, and customs classification is one of them. We've written about country-specific HS codes on Shopify for UK and EU sellers.

How do you set it up well?

A short checklist before you switch it on.

1. Confirm you're using Shopify Tax and have at least one fulfilment location in the EU.
2. Map your trade orders by route, so you know which ones fall inside the covered cases.
3. Set the Company VAT number field to Optional in checkout settings for B2B customers.
4. Turn on VAT invoices, so buyers get the reverse charge wording on their paperwork.
5. Place test orders for each route you sell on, and check the tax outcome on each.
6. Agree who checks unusual VAT numbers in VIES, and when.
7. Tell your finance team and your accountant what's changed.

If your trade prices and customer records live in an ERP, check how VAT numbers and zero-rated orders will land there too. Our guide to connecting Shopify to Business Central covers the sync underneath.

Where parallel helps

We build B2B commerce on Shopify for businesses selling to trade buyers across Europe, from a practice based in Belgium. Our page on selling across Europe covers the cross-border work in more detail.

If you'd like help checking which of your trade orders qualify, and setting up checkout to match, book a call.