Shopify Plus not removing VAT from price for B2B customers with valid VAT numbers

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Topic summary

Issue: Valid B2B VAT numbers are accepted on Shopify Plus, but VAT embedded in tax‑inclusive product prices isn’t removed. Shopify only stops adding VAT at checkout, so prices still display as VAT‑included.

Impact: The goal is to remove VAT across all touchpoints (front end, back end, and draft orders). Draft orders are especially problematic, as many apps don’t support draft tax logic and Shopify’s draft system can differ from normal checkout. Support has been “looking into it” for six days.

Explanation: With tax‑inclusive pricing, Shopify does not “peel out” VAT from displayed prices even for validated VAT numbers; it only omits adding VAT at checkout. Draft order tax behavior is inconsistent.

Options suggested:

  • Switch to tax‑exclusive pricing so VAT can be added/omitted correctly.
  • Use a third‑party VAT/tax‑exemption app that fully supports Shopify Plus (and drafts).
  • Build a custom Shopify Function to override tax behavior and enforce VAT removal everywhere.

Status: No confirmed fix yet; discussion remains open.

Key terms: VAT (value‑added tax); tax‑inclusive pricing (prices include VAT); draft orders (manually created orders with different tax logic); Shopify Functions (custom server‑side logic to modify taxes).

Summarized with AI on November 25. AI used: gpt-5.

On Shopify Plus, we’ve validated the VAT number up-front - it checks out - but the platform still won’t peel off the VAT that’s already in the goods price. So we’re not being double-charged, thank god, it’s just not removing what should never have been there. And drafts? Absolute shambles - most apps don’t even touch them. Been six days of 'we’re looking into it¨. If anyone knows how to force it through everywhere, front-end and back please let me know.

Even on Shopify Plus, validating a VAT number upfront won’t automatically remove VAT from your product prices if your store is using tax-inclusive pricing. Shopify only stops adding VAT at checkout, ,it won’t peel out the VAT that’s already baked into the price, which is why everything still shows as VAT-included even though the number checks out. Draft orders make it even messier, since most apps don’t support draft-order tax logic, and Shopify’s draft system doesn’t always follow the same tax rules as the normal checkout.

Right now, the only reliable ways to force VAT removal everywhere are switching to tax-exclusive pricing, using a third-party VAT/tax-exemption app that fully supports Shopify Plus, or building a custom Shopify Function to override tax behavior. Draft orders may still need extra handling because Shopify’s native support is inconsistent. If you need VAT correctly removed on both the front end and back end, a Plus-level custom Function is usually the cleanest solution.

Hope this gives you some clarity😊