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