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Correct tax and VAT configuration is essential for EU compliance and a smooth customer experience. These recommendations cover automated VAT calculation and invoicing for Scandinavian merchants.

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Enable Shopify Tax

Shopify Tax provides automated, destination-based VAT calculation. This ensures the correct VAT rate is applied based on where your customer is located, which is required under EU VAT rules.
Enable Shopify Tax for automated VAT calculation. This handles destination-based VAT rates across EU countries automatically.
Configure this in Settings > Taxes and duties in your Shopify admin. See Shopify Tax in the Shopify documentation.

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VAT invoices

EU and UK regulations require VAT invoices for many transactions. Shopify can generate these automatically.
Enable VAT invoices in your tax settings. This ensures compliance with EU/UK invoicing requirements without manual effort.
See VAT invoices in the Shopify documentation.

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One Stop Shop (OSS)

If you sell to consumers in other EU countries, the One Stop Shop (OSS) scheme simplifies VAT reporting. Instead of registering for VAT in each country, you report and pay VAT through your home country’s tax authority. With Shopify Tax enabled, destination-based VAT rates are applied automatically — which is a requirement when using the OSS scheme.
The OSS scheme applies when selling to consumers (B2C) in other EU member states. B2B sales with valid VAT numbers use the reverse charge mechanism instead.
See EU taxes in the Shopify documentation.

Shipping within the EU

VAT, customs, and regulations for intra-EU shipments

B2B sales

VAT number validation and reverse charge for business customers