Shopify Dev
More accurate UK VAT based on fulfillment location (opens in a new tab)
UK VAT now calculated based on fulfillment location, improving tax accuracy.
Shopify Changelog· Oct 23, 2026· 8/10
From the article
VAT on orders shipping to customers in Great Britain is now calculated using the fulfillment location that your order routing settings select for each order, the same way tax is calculated for orders shipping to the United States. If an order totals more than £135 GBP before tax and shipping and is routed to a location outside the UK, then the order is treated as an import, so VAT isn't charged at checkout. This applies even if your store also has a UK location. Orders of £135 GBP or less,…
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