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How VATquarter builds your return
What each part of the report means, how orders are classified, and how to file with the figures.
Setup
Open the app and go to Settings.
- Member State of identification: the EU country where you are registered for OSS. Non-EU merchants using IOSS through an intermediary choose the intermediary’s country.
- Default dispatch country: where goods ship from when Shopify has no fulfillment location on the order. Orders fulfilled from a Shopify location in another country use that location’s country automatically, which is what the Union scheme’s “Member State of dispatch” column needs.
- IOSS: turn on if you ship goods into the EU from outside it in consignments up to €150.
- Period basis: orders are assigned to periods by their processed (paid) date in your store’s timezone. You can switch to the created date.
- Northern Ireland: goods dispatched from a Northern Ireland location are treated as EU dispatch (XI). Destinations in Northern Ireland can’t be told apart from Great Britain because the app doesn’t read postcodes, so GB orders are excluded; add NI orders manually if you ship there.
Generating a period
On Reports, choose the scheme (OSS is quarterly, IOSS is monthly) and the period. The current, unfinished period is listed first so you can preview it; file from a closed period. VATquarter asks Shopify for a bulk export of the orders processed by the end of the period and updated since its start, which covers both the period’s orders and any earlier orders refunded during it. Large stores take a minute or two; the page refreshes itself.
Orders older than 60 days require the “all orders” permission, which the app requests when you install it. If older orders are missing, reinstall the app to grant it.
Reading the report
| Column | Meaning |
|---|---|
| Dispatched from | Member State the goods left from (Union scheme only). Rows dispatched from a country other than your Member State of identification go in the second part of the OSS return. |
| Consumption | Member State where the goods were delivered: the shipping address, or the billing address if there is none. |
| Rate | The VAT rate Shopify charged, labelled standard, reduced or other against a reference table for the destination country. Labels are advisory; the figures always reflect what was charged. |
| Taxable (EUR) | Line totals after all discounts, net of VAT, plus shipping net of VAT, converted to euro at the ECB rate for the last day of the period (or the next publication day). Orders paid in euro through Shopify Markets are reported in the euro amounts charged. Same-period refunds are already netted. Lines charged at 0% are left out and counted in a warning. |
| VAT (EUR) | The VAT charged, converted the same way. |
| Orders | Distinct orders contributing to the row. |
Corrections lists refunds issued this period for orders that belong to an earlier period, grouped by original period, Member State and rate; the return itself only asks for the VAT amount per period and Member State, which the export also gives. Net VAT due is the sum of the Member States whose balance (VAT on supplies plus corrections) is positive. A Member State with a negative balance refunds that amount to you directly; it does not reduce what you pay the others.
The XLSX export has four sheets: Return (what you file), By country, Audit (one row per order or refund component with amounts in both your currency and euro) and Excluded orders.
Excluded orders and why
| Reason | What it means |
|---|---|
| Domestic supply | Dispatched and delivered in the same Member State. Reported on your domestic VAT return, not OSS. |
| Outside the EU | Delivered to a non-EU country (including Great Britain, but not Northern Ireland). |
| Outside EU VAT area | Canary Islands, Ceuta, Melilla, Åland and similar territories: EU customs area but outside the VAT area. |
| B2B / tax exempt, B2B (VAT ID) | The customer was tax-exempt, the order was a company (B2B) order, or a VAT number was captured. Intra-EU B2B supplies are reverse-charged. |
| No VAT charged | An EU consumer order with a positive amount and zero tax. Usually a tax-settings gap; check before filing. |
| Dispatched outside EU / inside EU | The order belongs to the other scheme: goods shipped from outside the EU are IOSS territory; goods shipped from inside the EU are Union-scheme territory. |
| Over €150 | IOSS only: the goods value exceeds the consignment ceiling; import VAT is due at the border instead. |
| Marketplace liable | A marketplace (deemed supplier) is liable for the VAT, not you. |
| Test, cancelled | Test orders and orders that were voided or cancelled without payment. |
| Unpaid | Orders still pending or authorised (bank transfer, invoice, manual capture). They keep their original period; regenerate after payment. |
| POS / pickup | In-store sales and orders without a shipping address: goods weren’t transported to the customer, so they aren’t distance sales. |
Warnings
- Unknown rate: Shopify charged a rate we don’t recognise for that country. Check Settings → Taxes for overrides or outdated rates.
- Tax mismatch: the sum of line VAT differs from the order’s total tax, or the order was edited after payment. Compare with the order in Shopify.
- Negative line: refunds exceeded sales for a country and rate this period. OSS returns can’t hold negative lines; handle per your adviser’s guidance (usually as a correction).
- Missing ECB rate: the period hasn’t closed yet or the ECB hasn’t published. Regenerate after the period ends.
- Northern Ireland / Monaco: informational; the destination was remapped as described above.
Filing with the figures
- Generate the closed period after it ends, so rates and late refunds are final.
- Resolve warnings and review excluded orders.
- In your national OSS portal, enter each row of the Supplies table. Union scheme: rows dispatched from your Member State of identification go in part 2a; rows dispatched from other Member States go in part 2b under that Member State.
- Enter corrections under the periods they belong to.
- Pay the net VAT due to your Member State of identification by the last day of the month after the period.
- Keep the XLSX with your records for ten years, as the OSS rules require.
FAQ
Why don’t my totals match my Shopify sales report? Shopify’s sales reports include domestic, non-EU and B2B orders and are in your store currency, gross of VAT. The OSS return covers cross-border B2C EU supplies only, net of VAT, in euro.
My store is under the €10,000 threshold. Do I need this? Check the threshold tracker. Under the threshold you may charge home-country VAT and you don’t file OSS. Once you pass it in a calendar year, destination VAT applies from that sale.
Can my accountant use it? Yes. Add them as a staff member with Apps access in Shopify, or send them the XLSX.
Something looks wrong. Email [email protected] with the store name and period. Include the order name if it’s a specific order.