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# How to set up Shipping VAT for Etsy orders synced to Shopify

| The Shipping VAT settings let you choose which VAT rate the app uses for shipping when Etsy orders sync to Shopify. You can reuse your product VAT rates, set one rate for every country, or set a different rate per country.

|| Important Note: The Etsy API does not include VAT details in Etsy orders. That's why the app uses the VAT percentages you set here. The order total in Shopify always matches what the buyer paid on Etsy. These settings only change how that total is split into shipping and VAT.

## __Before you start__

- **Order sync must be on.** Go to **Settings → Order & Inventory → Sync Options for Orders & Inventory** and select **Enable Both Order and Inventory Sync**.
- **Know your VAT rates.** Have the standard VAT rate for each country you ship to (for example, Germany 19%, France 20%). Check with your accountant if you're not sure which rate applies to shipping.

## __Where to find it__

1. In Shopify admin, open **Apps → Etsy Integration – DPL → Settings**.
2. Click the **Order & Inventory** tab.
3. Scroll to **Sync Tax/VAT from Etsy Order to Shopify**.

1. ![Etsy Integration Settings, Order & Inventory tab](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/01-where-to-find_1cuaaur.png)

## __Step-by-step setup__


### Step 1: Turn on VAT sync
###### 

Under **Etsy Tax & VAT Synchronization**, check **Sync VAT from Etsy order**. More VAT options appear below it.![Sync VAT from Etsy order checkbox](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/02-step1-sync-vat_ua9w2t.png)


### Step 2: Tell the app your shipping price includes VAT

Check **Is your Etsy order's shipping price inclusive of VAT?**![Product and shipping price inclusive of VAT checkboxes](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/04-step2-inclusive-checkboxes_1qdivf7.png)


|| The **Shipping VAT** section stays greyed out until this box is checked.

Check **Is your Etsy product's price inclusive of VAT?** too if your product prices include VAT. That box unlocks the **Product VAT** section.![Shipping VAT section greyed out until the shipping box is checked](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/03-step2-shipping-vat-greyed_199p4jf.png)


### Step 3: Choose how VAT shows on the Shopify order

Under **VAT sync setting**, pick one:

- **Sync VAT with inclusive in price**: VAT stays inside the item and shipping prices. The subtotal stays the same as on Etsy.
- **Sync VAT with exclusive in price**: VAT is taken out of the price and shown as a separate tax line, so the subtotal is lower.

Both options keep the order total equal to what the buyer paid on Etsy.![VAT sync setting options](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/05-step3-vat-sync-setting_11cag64.png)


### Step 4: Set your Shipping VAT rate

In the **Shipping VAT** section, use **one** of these three methods.

#### Option A: Use your product VAT rates for shipping

Best if shipping is taxed at the same rate as your products (common in the EU).

1. Check **Use my product VAT rates for shipping**.
2. The **VAT % on Etsy Shipping** field and the **Country-Specific Shipping VAT** list are greyed out. Shipping now uses your **Product VAT** settings, including any country-specific product rates.
3. Make sure your **Product VAT** section is filled in. See [Country-Specific VAT Configuration](https://etsyintegration-dpl.crisp.help/en-gb/article/country-specific-vat-configuration).![Use my product VAT rates for shipping checked](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/06-optiona-product-rates_1iu482f.png)


#### Option B: One shipping VAT rate for every country

Best if you mainly sell in one VAT country.

1. Leave **Use my product VAT rates for shipping** unchecked.
2. In **VAT % on Etsy Shipping**, enter the rate as a number without the % sign (for example 20).![VAT % on Etsy Shipping flat rate](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/07-optionb-flat-rate_1s7ty7l.png)


#### Option C: Different shipping VAT rates by country

Best if you ship to several countries with different VAT rates (for example under EU OSS).

1. Leave **Use my product VAT rates for shipping** unchecked.
2. In **VAT % on Etsy Shipping**, enter your default rate. It applies to any country you don't list.
3. Under **Country-Specific Shipping VAT**, click **+ Add country**.
4. In **Country**, start typing the country name and pick it from the list. After you pick it, the field shows the 2-letter country code (for example Germany → DE).
5. In **Shipping VAT %**, enter that country's rate (for example 19).
6. Click **+ Add country** again for each extra country.
7. To delete a country, click **Remove** on its row.![Country-Specific Shipping VAT row (Germany DE, 19%)](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/08-optionc-country-rates_1ho9sqc.png)


### Step 5: Save

Click **Save** in the bar at the top of the page. If you leave without saving, your changes are lost.![Save button in the unsaved changes bar](https://storage.crisp.chat/users/helpdesk/website/-/f/6/a/a/f6aa55678ad1e800/09-step5-save-bar_1mo2cv.png)


## __Which rate does the app use?__

For each order, the app checks the buyer's shipping country in this order:

1. **Use my product VAT rates for shipping** is checked → it uses the product rate for that country, or the default product rate if the country isn't listed.
2. The country is in **Country-Specific Shipping VAT** → it uses that country's shipping rate.
3. Otherwise → it uses **VAT % on Etsy Shipping**.

## __Example__

A buyer in Germany pays **€11.90** shipping on Etsy. You've added **Germany (DE) → 19%** under Country-Specific Shipping VAT.

- VAT included in shipping = 11.90 × 19 ÷ 119 = **€1.90**
- Shipping without VAT = **€10.00**

What Shopify shows:

- **Inclusive in price:** shipping line €11.90 (includes €1.90 VAT)
- **Exclusive in price:** shipping line €10.00 plus a €1.90 VAT tax line

The order total is the same either way.

## __FAQ and troubleshooting__

**The Shipping VAT section is greyed out and I can't edit it.**
Check **Is your Etsy order's shipping price inclusive of VAT?** (and make sure **Sync VAT from Etsy order** is on).

**The flat rate and country list went grey after I checked "Use my product VAT rates for shipping".**
That's expected. Shipping now uses your Product VAT rates. Uncheck the box to set separate shipping rates.

**Does changing these settings update orders that already synced?**
No. New settings only apply to Etsy orders synced after you click **Save**.

**I typed a country name and a different country came up first.**
The search matches any part of the name ("Ger" also matches Algeria and Niger). Check you picked the right country before you enter a rate.

**What should I enter if I don't charge VAT on shipping?**
Leave **VAT % on Etsy Shipping** at 0 and don't add any countries.

**My Shopify order total doesn't match Etsy.**
Check that **Is your Etsy order's shipping price inclusive of VAT?** matches how you actually price shipping on Etsy, then contact support and include the Etsy order (receipt) ID.

| Need help? Click the chat icon in the app and our support team will help you set up your VAT.