# More accurate UK VAT based on fulfillment location

By Steven Van · 2026-10-23

Orders over £135 routed to a non-UK location are now treated as imports with no VAT at checkout, even if the store also has a UK location.

VAT on orders shipping to Great Britain is now calculated from the fulfillment location chosen by your order routing settings for each order. [Shopify](<https://creatorstoolbox.com/tools/shopify>) already works this way for tax on orders shipping to the United States, and the [changelog entry](<https://changelog.shopify.com/posts/more-accurate-uk-vat-based-on-fulfillment-location>) describes the UK change as an improvement in the admin.

## When VAT is not charged at checkout

If an order totals more than **£135 GBP** before tax and shipping and is routed to a location outside the UK, it is treated as an import, so VAT isn't charged at checkout. This applies even if the store also has a UK location.

## What is not affected

- Orders of £135 GBP or less

- Orders shipping to Northern Ireland

- Existing orders

## Charging VAT on these orders

There are two options. Update your order routing so these orders are assigned to a UK location, or collect duties and import taxes at checkout. Shopify points to its Help Center for more on charging VAT on orders over £135.

![Shopify](<https://www.google.com/s2/favicons?domain=shopify.com&sz=128>)

Shopify

Build and run an online store — e-commerce platform with themes, payments, inventory, and AI tools for creators selling products.

[View Shopify →](<https://creatorstoolbox.com/tools/shopify>)

Sources

[Original source](<https://changelog.shopify.com/posts/more-accurate-uk-vat-based-on-fulfillment-location>)

[Read More accurate UK VAT based on fulfillment location on Creators Toolbox](<https://creatorstoolbox.com/blog/shopify-more-accurate-uk-vat-based-on-fulfillment-location>)

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Canonical source: https://creatorstoolbox.com/blog/shopify-more-accurate-uk-vat-based-on-fulfillment-location