The €10K VAT Mistake That Caught Them Off Guard
An Irish Shopify seller once told me,
“We’ve just been hit with a €10,000 VAT bill we didn’t expect.”
And honestly? It wasn’t the first time I’d heard that.
This wasn’t someone who was dodging tax or cutting corners.
They were doing really well — scaling fast, selling into the UK and EU, and working with an accountant.
But their VAT setup hadn’t kept up with their growth.
Here’s what was missing:
🚫 No OSS registration for EU sales
🚫 No UK VAT reporting in place
🚫 No monthly visibility on what VAT was building up behind the scenes
And by the time the bill landed, the cash had already gone — tied up in stock and Meta ads.
This is why VAT isn’t just a compliance task.
👉 It’s a cash flow risk if you don’t plan for it.
Why VAT Mistakes Are So Common Post-Brexit
Since Brexit, the rules for Shopify sellers have gotten way more complicated — and a lot of business owners haven’t been properly guided through the changes.
Here are the 4 biggest traps I see again and again:
1. OSS Confusion
The OSS (One-Stop Shop) system only applies to EU-to-EU sales.
UK sales? Totally separate VAT registration needed.
2. UK VAT Registration Blind Spot
If you’re shipping stock into the UK, you likely need a UK VAT number.
And if you don’t reclaim UK VAT on your supplier costs, you’re leaving thousands on the table.
3. Double VAT Payments
Some sellers pay VAT in the UK and again in Ireland — not realising it’s a setup issue that’s fixable with the right checks.
4. No OSS Visibility
Many Shopify sellers file OSS through their accountant or an app… but never actually check what’s being reported.
The app might file it, but you’re still legally responsible.
Real Impact: From Panic to Planning
One of my clients — let’s call her Sarah — was in this exact position.
She runs a successful store here in Ireland. She was growing fast. But every VAT period brought stress and panic.
Her previous accountant didn’t specialise in eCommerce, so her setup wasn’t reviewed regularly.
Her OSS filings were automated.
Her UK VAT returns were done late — or not at all.
We started with a simple Check-Up Call.
In 20 minutes, we spotted:
✅ Missing UK reclaim opportunities
✅ OSS thresholds crossed without flagging
✅ VAT liabilities building up with no tracking in place
Six months later, here’s where Sarah is:
VAT tracked monthly across all regions
OSS and UK VAT filed proactively
UK reclaim saving her thousands per quarter
Cash flow finally under control
Her words?
“I don’t feel anxious about VAT anymore. I finally understand what’s going on.”
What You Can Do Right Now
If VAT still feels like a black hole, here are 3 things you can do this week:
✅ 1. Review your OSS + UK VAT status
Check whether you’ve crossed the EU threshold (€10,000) for OSS.
If you’re selling into the UK, make sure you’re VAT registered and reclaiming costs.
✅ 2. Check how much VAT you owe — today
Not just what you filed last — what’s building up right now based on current sales.
If your accountant isn’t tracking this monthly, ask them to.
✅ 3. Look at who’s in charge of VAT in your setup
Is it your app? Your accountant? You?
If you don’t know what’s being reported, when, or how… you’re at risk.
Final Thoughts: VAT Isn’t Just Tax — It’s Strategy
Here’s what I want every Shopify seller to know:
You don’t need to become a VAT expert.
But you do need to understand your setup — because no one else is as invested in your success as you are.
The goal isn’t perfection.
It’s visibility.
It’s confidence.
It’s knowing your VAT isn’t quietly undoing your cash flow behind the scenes.
Want someone to walk you through it?
I offer a free 20-minute VAT Check-Up Call for Irish Shopify sellers.
We’ll look at your current setup and spot any red flags early — so you don’t get blindsided later.
