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Topic summary
UK merchants not registered for VAT want invoices that do not show VAT. The practical setup shared by a user and confirmed by others works:
- Settings > Billing > Tax registration > select “I’m not VAT registered,” Save.
- Settings > Taxes > Tax regions: ensure all regions show “Not collecting” (for UK, adjust the default 20% to 0% if prompted, then Save so it reflects not collecting).
- Uncheck “Show all prices with tax included.”
- On products, leave “Charge tax on this product” disabled while you’re not collecting tax.
Guidance/clarifications from Shopify staff:
- UK VAT registration is only mandatory once VAT‑taxable turnover exceeds £85,000 (per HMRC). If below, you generally shouldn’t enable VAT collection.
- Customers in the UK/EU will only be charged VAT if taxes are enabled for those regions. For overseas markets and shipping, charge taxes (including on shipping rates) only if local laws require it; consult official resources or a tax professional.
Resources shared: HMRC VAT registration rules and exporting guidance; Shopify tax setup guides; a UK tax forum thread. Multiple users confirmed the settings resolved invoice accuracy. Discussion remains informational with case-by-case obligations; no single official resolution beyond configuration and references.