How to Set Up EU VAT for Your Shopify Store
Learn how to set up EU VAT for your Shopify store with our step-by-step guide. Configure country-specific or single-rate VAT in minutes with automated calculations.
If you're selling to EU customers on Shopify, you need to understand VAT (Value Added Tax). The good news? Setting it up is way easier than you think. This guide will walk you through everything in about 10 minutes using Profitone.
We'll cover the two main options: country-specific rates (different rates for each EU country) and single rate (one rate for everyone). Let's get into it.
What you'll need
The basics (super quick)
VAT is basically a sales tax that's included in the price. Unlike US sales tax where it gets added at checkout, VAT is already baked into the price your customers see.
When do you actually need to register?
Here's the deal: once you hit €10,000 in annual EU sales, you need to register for VAT. That's total sales across all EU countries, not per country.
Quick heads up
VAT rates across the EU range from 17% (Luxembourg) to 27% (Hungary). Most countries sit around 20-21%.
Single rate vs. country-specific: what's the difference?
This is actually pretty straightforward. EU law says:
Under €10k/year in EU sales
You charge your home country's VAT rate to everyone. Simple.
Over €10k/year in EU sales
You need to charge each customer's country rate. The system handles this automatically.
Pro tip
The €10k threshold is for your total EU sales, not per country. Once you cross it, you'll need to create a new tax profile with country-specific rates.
Important disclaimer
The VAT amounts shown in your Profitone dashboard are estimates based on your sales data. While we strive for accuracy, these are for informational purposes only. Always consult with a tax professional or your local tax authority for final VAT obligations.
Setting it up (the easy way)
Alright, let's get this done. The whole thing takes about 10 minutes, and Profitone does most of the heavy lifting.
Following along?
This guide uses screenshots from Profitone's dashboard. Your interface should look identical if you're logged in.
Go to your Profitone dashboard
Log into Profitone and navigate to the costs section in the top navigation bar. You'll see all your tax profiles here.
ProfitOne dashboard with Tax section highlighted
Choose your VAT template
You'll see template options right there. Pick "EU VAT (Country-Specific)" if you're over €10k, or "EU VAT (Single Rate)" if you're under. The country-specific one handles all 27 EU countries automatically.
Template selection showing EU VAT options
Set your reporting frequency
Most people go with quarterly. Here are your options:
Pick your start date
Choose when you want this to kick in. Something like Q1 2025 works. Profitone will calculate from there.
Profitone tax quarterly date picker
Check the country rates
The template already has all 27 EU countries loaded with their current rates (17-27%). It automatically applies the right rate based on where your customer is.
You can review these rates in the template, but you don't need to change anything. The system knows which rate to use based on your customer's location.
📸 Screenshot: EU VAT template showing all 27 countries with their rates
Hit activate
Review everything one last time, then click "Create Tax Profile". Done! Your VAT is now live.
You're all set!
From now on, every EU sale will automatically have the correct VAT rate applied. No manual work needed.
How to view your calculated taxes
Now that your profile is active, here's how to check your tax amounts in the Profitone dashboard. The process varies slightly depending on your reporting frequency.
For quarterly reporting
Most people use quarterly, so here's the step-by-step:
- 1
Go to Dashboard Overview
Navigate to the main dashboard in your Profitone account.
Profitone dashboard overview page
- 2
Select the last day of the quarter
Click the date picker and switch to the "Quarter" tab. You'll see Q1-Q4 cards - just click the quarter you want. Or use the date picker to manually select the quarter end date:
- Q1: March 31
- Q2: June 30
- Q3: September 30
- Q4: December 31
Profitone dashboard overview page - 3
The tax section will appear
Once you've selected the quarter end date, the tax section shows up automatically with your total tax for that quarter.
Profitone dashboard tax section
- 4
Click "Details" to open the modal
Click the "Details" button to see the full breakdown of your taxes by country or category.
Tax details modal
- 5
Click on each item to see the dropdown
Each row expands to show the tax breakdown, including rates applied and total tax collected.
Tax details modal with tax profile opened
Critical: Quarterly taxes only show on quarter end dates
If you don't see your Q1 taxes, make sure March 31 is included in your date selection. Quarterly tax amounts only appear when the last day of the quarter is visible in your selected date range. This is super important to remember.
For monthly or yearly reporting
The process is exactly the same, but the dates change:
Monthly reporting
Select the last day of the month (Jan 31, Feb 28/29, March 31, etc.). The tax section appears with that month's totals. Click "Details" and expand items the same way.
Yearly reporting
Select December 31 to see your full year totals. Same Details button, same dropdowns.
For real-time reporting
Real-time is more flexible. Just select any date range and you'll see the taxes for that specific period. The Details button and dropdowns work exactly the same way.
Pro tip
Bookmark the quarter end dates in your calendar. That way you'll always know when to check your quarterly tax totals. Most countries require filing within 30 days after quarter end.
Don't make these mistakes
Here are the most common slip-ups people make (and how to avoid them):
Waiting too long to register
Don't wait until you're already over €10k. Register before you hit the threshold. Check your EU sales monthly.
Using single rate when you shouldn't
Once you're over €10k/year, you legally need to switch to country-specific rates. It's not optional.
Wrong reporting frequency
Check your VAT registration docs for the required frequency. Most countries want quarterly, but double-check yours.
Forgetting end dates
If you're seasonal or testing the market, set an end date. Otherwise it'll keep running forever.
Quick answers to common questions
Do I need to register in every EU country?
Nope. With the One-Stop Shop (OSS) system from 2021, you can register in your home country and report all EU sales through one return. Way simpler than it used to be.
What's the difference between real-time and quarterly?
Real-time calculates VAT on every single transaction as it happens. Quarterly does it at the end of each quarter (March 31, June 30, etc.). Most people use quarterly because it matches when you file your VAT returns.
Can I switch from single rate to country-specific later?
You can't modify an existing profile, but you can create a new one with country-specific rates and set an end date on your old single-rate profile. This way, the old profile stops at a specific date (like end of Q1) and the new one takes over. Best to make the switch at quarter boundaries for cleaner reporting.
What if I sell both B2B and B2C?
B2B sales in the EU often use something called "reverse charge" (no VAT if they give you a valid VAT number). B2C always includes VAT. You might need separate profiles for each.
Quick reminder
Set up calendar reminders for your quarterly VAT returns. Most EU countries want them filed within a month after each quarter ends.
Official resources
Wrapping up
That's it! Setting up EU VAT with Profitone really doesn't have to be complicated. The template handles all 27 countries automatically, rates update on their own, and everything syncs directly with your Shopify store based on where your customers are located.
You can now focus on actually growing your business instead of worrying about whether you're charging the right VAT rate to someone in Slovenia.
You're done!
Your EU VAT is set up and ready to go. Every sale will automatically have the correct rate applied. Pretty neat, right?