Standard Checkout Logic
Written By Floris de Vries
Last updated 2 days ago
Standard Checkout Logic uses Shopify’s native tax system and checkout flow to apply VAT exemption.
This mode is required if your store sells prices excluding VAT, and is suitable for simpler EU B2B setups.
When Standard Checkout Logic is required
⚠️ Mandatory for VAT-exclusive pricing
If your store prices are set excluding VAT, Standard Checkout Logic is the only supported option.
Draft Order Logic is not compatible with VAT-exclusive pricing, because Shopify must calculate VAT dynamically during checkout.
How Standard Checkout Logic works
When Standard Checkout Logic is enabled, the app integrates with Shopify’s existing tax system instead of creating Draft Orders.
1. VAT validation
The customer enters:
Email address
VAT number
The VAT number is validated via the EU VIES API.
2. Customer is marked as tax exempt
After successful validation:
The customer is marked as tax exempt in Shopify
VAT data is stored using cart attributes and order notes
Shopify now knows this customer qualifies for VAT exemption.
3. Standard Shopify checkout
When the customer clicks Checkout:
They proceed through the standard Shopify checkout
Shopify applies tax rules dynamically
VAT is removed where applicable
The app does not interfere with checkout pricing.
4. Order is created
After checkout:
The order reflects VAT exemption
VAT information is preserved in the order notes
Shopify tax reports remain accurate
Benefits of Standard Checkout Logic
Fully compatible with VAT-exclusive pricing
Uses Shopify’s native checkout experience
Maximum compatibility with other cart and bundle apps
No checkout redirection
Simple and predictable behavior
Limitations of Standard Checkout Logic
Less reliable with multiple Shopify Markets
Fixed or custom market prices may not recalculate
Limited control over complex pricing scenarios
Some edge cases cannot be handled by Shopify’s tax engine
When to use Standard Checkout Logic
✅ Recommended if you:
Sell prices excluding VAT
Operate in a single EU market
Do not use fixed market prices
Want full compatibility with third-party cart apps
Prefer Shopify’s default checkout experience
When Standard Checkout Logic may not be sufficient
⚠️ Consider Draft Order Logic if you:
Sell prices including VAT
Use multiple Shopify Markets
Use fixed or custom market pricing
Need guaranteed VAT removal in complex setups
(Draft Order Logic is only suitable for VAT-inclusive pricing.)
Important Shopify settings
Even with Standard Checkout Logic, Shopify settings must be correct.
Enable Dynamic Taxes
Go to:
Settings → Markets → [Select market] → Duties and import taxes
Make sure:
✅ Dynamic taxes is enabled
If this is disabled:
VAT exemption may apply
Prices may not recalculate correctly
Market-specific pricing warning
If you use market-specific pricing:
Shopify may treat prices as fixed
VAT may be set to 0% but prices stay unchanged
This is a Shopify limitation.
Email matching requirement
Shopify identifies customers by email address.
The email entered during VAT validation must exactly match the email used at checkout.
If the emails do not match:
The customer will not be tax exempt
VAT may still be charged
Summary
FeatureStandard Checkout Logic | |
VAT-exclusive pricing | ✅ Required |
VAT-inclusive pricing | ✅ Supported |
Draft Orders | ❌ No |
Multiple Markets | ⚠️ Limited |
Fixed market prices | ⚠️ Limited |
Checkout experience | Shopify standard |
App compatibility | Excellent |