Why is a tax ID required to use ShipStation in some countries?

The UK, certain EU countries, and Australia require companies that provide business-to-business (B2B) services to confirm they are working with registered businesses to ensure compliance with their current legislation. Registering your ShipStation account with your country's required tax ID is the method we use to determine your company's business status.

Additionally, you'll want to enter your Tax ID Number to ensure correct invoicing and avoid account-billing complications. A notification to add your Tax ID registration number may appear each time you log in until you have added one.

If you instead need details on how to add your Tax Identifier Number to customs declarations, see our Tax Identifier Number Guide.

This Guide is Not Legal Advice

This article is only a guide and not a substitute for legal advice. Please consult a tax expert to discuss your specific business needs.

Types of Registration Numbers by Country

  • 🇦🇺 Australia accounts: An Australian Business Number (ABN) is a unique 11-digit identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). The law requires each entity that carries on a business in Australia to have an ABN and that the ABN appear on each tax invoice and other tax-related documents issued by the entity.

  • 🇫🇷 France: The Numéro de TVA is used to identify businesses approved to charge VAT. You receive this number when you register as a business.

  • 🇩🇪 Germany: The Umsatzsteuer-Identifikationsnummer (USt-IdNr) is used to identify businesses as approved to charge VAT.

  • 🇬🇧 UK accounts: A VAT Registration number (sometimes known as a VAT ID) is a number that identifies your business as approved to charge VAT. Businesses can sign up for a VAT registration number online.

    Valid VAT ID Required

    Starting May 1st, 2025, ShipStation UK will apply VAT charges to subscription fees and shipping labels for sellers who do not provide a valid VAT ID for their ShipStation account.

Add a Tax ID To Your Account

To add your Tax ID:

  1. Click the Add ID Number button.

    Shows Add VAT ID Number button

    This image shows the UK version. The button will read differently for each type of tax ID, depending on your country:

    • 🇦🇺 Australia: Australian Business Number (ABN)

    • 🇫🇷 France: Numéro de TVA

    • 🇩🇪 Germany: Umsatzsteuer-Identifikationsnummer

    • 🇬🇧 United Kingdom: VAT Registration Number

    The Issuing Authority will default to the account holder's home country.

  2. 🇫🇷 🇧🇪 🇪🇺 🇦🇺 EU and AU-based merchants: Enter your Tax ID number, and click Save.

    SET__ACCT__SUBS__VatID__Entry_Add-ABN_MRK.png

    This image shows the Australian ABN. The text will be specific to your country.

    🇬🇧 UK-based Merchants: Enter your Tax ID number, Tax ID Address, and click Save.

    The ability for UK-based accounts to add their VAT ID will be available sometime in April 2025, prior to the 1st May deadline.

    Shows TAX ID field, Address boxes, & the Save button

    🇬🇧 UK-based Merchants: Tax ID Address Information Required

    For merchants in the UK, a Tax ID Address is mandatory when you add a Tax ID number. This address must be in the same country as the Issuing Authority where your Tax ID was registered (for a VAT ID number, the Tax ID Address should be located in the UK).

    Failure to provide a Tax ID Address may render your invoice incomplete or invalid for tax purposes, even if you are VAT-ID registered.

    If the address where your VAT ID is registered differs from your payment method billing address, please enter it in this section. If you do not provide an invoicing address, your invoice may be incomplete or invalid for tax purposes, regardless if you are VAT-ID registered.

    The Tax ID Number field only accepts numbers. You do not need to enter dashes or country codes.

Tax Number FAQs

Why are VAT charges applied to UK accounts?

Starting 1st May 2025, ShipStation is required to apply VAT on UK-based accounts for subscription fees, labels purchased via ShipStation Carriers, and other transactions for sellers who do not provide a valid VAT ID.

Who will be affected by these VAT charges?

UK-based merchants who do not provide a valid VAT ID for their ShipStation account will be subject to VAT on applicable fees and transactions.

What transactions will have VAT applied?

VAT will be applied to:

  • Subscription fees

  • Labels purchased via ShipStation Carriers

  • Other transactions related to ShipStation services

    • Exception: VAT will NOT be applied to labels purchased through your own carrier accounts.

Will ShipStation charge VAT/GST on subscription and label purchases?

For accounts that have added their registration number, ShipStation does not charge VAT/GST for subscription fees or ShipStation Carrier label purchases. To be more accurate, it is a 0% rate for these services. If you purchase labels through your own carrier accounts, it is up to that carrier whether they charge VAT/GST for their label purchases.

How can I avoid VAT charges on my ShipStation fees and labels?

To avoid VAT charges, ensure that you provide a valid VAT ID in your ShipStation UK account settings before 1st May 2025.

Can I get a VAT refund if I later provide my VAT ID?

VAT charges applied before you submit a valid VAT ID likely are not refundable. We recommend that you update your VAT ID as soon as possible to avoid unnecessary charges.

Where can I find my VAT invoice?

VAT invoices will be available in the Transaction History section within your ShipStation account. For more details, see View Invoices & Data Archives.

What if my ID is not accepted?

Ensure your registration number is accurate and up to date. The best way to check your ID number is to check your local tax ID registration website. You can also utilize VIES to look up your ID.

🇦🇺 Merchants in Australia can look up an Australian Business Number (ABN) here.

How do I update my ID number?

Currently, once a Tax ID has been added to an account it cannot be updated, only deleted.

What happens if my VAT ID is invalid or missing?

For UK-based accounts, if you do not provide a valid VAT ID, ShipStation will charge the applicable VAT rate on your subscription fees, ShipStation Carrier labels, and other transactions.

What if I do not have a tax ID number?

🇬🇧 For the UK, while tax settings are optional, accounts without a valid tax ID may be subject to local taxes. Once entered, these tax settings cannot be changed

Is my information secure?

Yes. ShipStation only uses your registration number to confirm we are selling our services to verified businesses. See our Privacy Policy for more details on how we manage private information.

Will merchants registered in AU, DE, or FR be subject to VAT Invoicing?

No. Only merchants registered in the UK will be subject to local tax billing.

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