For many clients selling to EU customers, they are including tax in prices because they need to show prices inc. VAT to B2C customers or retailers and also charge tax at Checkout. At the same time, when selling to B2B customers in EU, they need to deduct tax from Checkout for EU cross-border countries but not for the home country. This article will help you achieve this result using our Tax Exempt feature.

If you have not setup or configure anything for the Tax Exempt yet, please have a look at our user guide for Tax Exempt for better understanding on the feature.

In case you have already done that, here is how you can change some configures to make the flow work properly:

1. Taxes and duties

First thing first. You need to setup general tax settings in Shopify to collect tax for B2C customers. When tax value is available on the site, we will then have tax value to deduct for B2B customers.

• Setup to collect tax for European Union
  
• And choose Include sales tax in product price and shipping rate in order to include tax in your prices as default.
  

2. Taxes and duties within Shopify Markets

• From Markets section, if you are having a separate market setup for EU, please click there
• From the Taxes and duties section, please make sure you choose Tax display as Show as included in order to display prices as tax included.
  

3. Tax Exempt feature in BSS: B2B & Wholesale Solution app

• Navigate to the configuration of the Tax Exempt feature
  
• Then you need to tick on:
  #Show tax ID validation box on cart page: to show the VAT ID validation field on Cart
  #Add discount to exclude tax from prices: to exclude tax from Check by adding a discount
  
• Down below, you can untick the home country from the list so that customers won't be able to have tax exempted even if they can put a valid VAT ID in the box.
  

=> As a result, tax will be removed from Checkout for B2B customers.

Note

• Please make sure that in both Shopify general tax settings and Markets tax settings, you choose to include tax in prices and show prices as included.

If you have setup both of the above but it's not working properly, feel free to contact our support at support-sbc@bsscommerce.com or via our Live Chat within the app.

Hope this article is clear and helpful. Wish you a wonderful day!😊

By Jonas N.

Updated on: 24/06/2025