Hi Victor,
EU VAT is not been charged to Northern Ireland though. I tried placing order on our website and it’s showing UK VAT at 20% instead of EU VAT 23% to Northern Ireland. We are bassed in republic of Ireland.
Topic summary
This thread addresses VAT tax configuration challenges for Irish Shopify merchants, particularly post-Brexit complications with Northern Ireland.
Core Issue:
Merchants based in the Republic of Ireland report that Shopify incorrectly applies UK VAT (20%) instead of Irish/EU VAT (23%) when selling to Northern Ireland customers, despite only having Irish VAT registration.
Key Technical Details:
- Irish VAT registration required when turnover exceeds €37,500 (services) or €75,000 (goods)
- Northern Ireland has dual status post-Brexit: part of both UK and EU tax regimes
- Under the NI Protocol, sales from Republic of Ireland to Northern Ireland should charge EU VAT rates
- The platform splits UK by region for shipping but not for tax markets, causing configuration conflicts
Attempted Solutions:
- Support suggested changing default location (impacts local pickup functionality)
- Recommended contacting support team directly with ticket #25280879
- Dynamic tax-inclusive pricing suggested for merchants with both Irish and UK VAT numbers
Status:
The Northern Ireland VAT rate issue remains unresolved after 4 years. Some merchants have disabled Northern Ireland ordering entirely. Support escalates individual cases to the tax team, but no systematic platform fix has been implemented. Merchants are advised to consult tax professionals for compliance guidance.
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