Draft Order Logic (Important Restrictions)

Written By Floris de Vries

Last updated 2 days ago

The EU Tax Exemption App supports two checkout flows.
Draft Order Logic is powerful, but not compatible with every pricing setup.

⚠️ Critical rule
If your store sells prices EXCLUDING VAT, you must use Standard Checkout Logic.
Draft Order Logic is not supported for VAT-exclusive pricing.

Why Draft Order Logic is not compatible with VAT-exclusive pricing

When prices are set excluding VAT, Shopify expects to:

  • calculate VAT during checkout

  • apply tax rules dynamically based on customer and market

Draft Orders work differently:

  • prices are finalized before checkout

  • Shopify does not reapply or adjust VAT logic in the same way

  • this can lead to incorrect totals or missing tax behavior

For this reason:

  • VAT-exclusive stores cannot use Draft Order Logic

  • Standard Checkout Logic is the only supported option

How Draft Order Logic works

When Draft Order Logic is enabled, the app does not use Shopify’s standard checkout flow.

Instead, it creates and manages a Shopify Draft Order after successful VAT validation.

1. VAT validation

The customer validates their:

  • VAT number

  • Email address

Validation is performed via the EU VIES API.

2. Draft order is created

After successful validation, the app automatically creates a Shopify Draft Order containing:

  • All current cart items

  • Correct pricing (VAT removed where applicable)

  • Customer email

  • VAT number

  • Company address data (when available from VIES)

  • Tax exemption status

3. Checkout redirection

When the customer clicks Checkout:

  • They are redirected to the Draft Order invoice URL

  • The standard Shopify checkout is bypassed

This ensures VAT exemption is respected even in complex pricing or market setups.

4. Automatic updates

If the customer changes the cart after validation:

  • The existing draft order is automatically updated

  • Items, quantities, and prices remain fully in sync

Benefits of Draft Order Logic

  • Highly reliable VAT exemption

  • Works with fixed market prices

  • Handles multiple Shopify Markets correctly

  • Preserves all VAT validation data in the order

  • Greater control over pricing and tax behavior

  • Improved B2B order tracking and auditing

Limitations of Draft Order Logic

  • ❌ Not compatible with VAT-exclusive pricing

  • May conflict with bundle or cart-modifying apps

  • Checkout experience differs from standard Shopify checkout

When to use Draft Order Logic

✅ Recommended if you:

  • Sell prices including VAT

  • Use multiple Shopify Markets

  • Use fixed or custom market prices

  • Sell B2B across multiple EU countries

  • Need maximum reliability for VAT removal

❌ Do NOT use Draft Order Logic if you:

  • Sell prices excluding VAT

  • Rely on Shopify to calculate VAT only at checkout