Shifting of VAT refers to the change in responsibility to pay VAT to a tax authority. This change is the shift to the consumer, requiring you to not collect VAT on the order. We have implemented features in eCom that correspond to EU tax requirements regarding VAT shifting. 

VAT shifting is based on the shop location and the shipping destination.

There are three scenarios where the VAT is automatically shifted to 0%:

1. A company with a valid VAT number shipping to a different country than where the webshop is located.
2. A consumer outside the EU (including Norway and Switzerland).
3. A consumer from the United Kingdom (UK) whose order value is greater than a certain amount.

Next steps

• You can use the Tax ID field in checkout to collect tax IDs or EORI numbers (for the UK) from businesses.