Articles on: Order Management

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

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

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

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

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

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

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).

Check Use my product VAT rates for shipping.
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.
Make sure your Product VAT section is filled in. See Country-Specific VAT Configuration.

Option B: One shipping VAT rate for every country

Best if you mainly sell in one VAT country.

Leave Use my product VAT rates for shipping unchecked.
In VAT % on Etsy Shipping, enter the rate as a number without the % sign (for example 20).

Option C: Different shipping VAT rates by country

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

Leave Use my product VAT rates for shipping unchecked.
In VAT % on Etsy Shipping, enter your default rate. It applies to any country you don't list.
Under Country-Specific Shipping VAT, click + Add country.
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).
In Shipping VAT %, enter that country's rate (for example 19).
Click + Add country again for each extra country.
To delete a country, click Remove on its row.

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

Which rate does the app use?

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

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.
The country is in Country-Specific Shipping VAT → it uses that country's shipping rate.
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.

Updated on: 02/10/2026

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