---
title: Product Eligibility for VAT Exemptions
description: Learn about product eligibility settings for VAT exemptions in the DIY Tax Exempt Checkout app for Shopify.
---

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October 19, 2026

# Product Eligibility for VAT Exemptions

## Learn how to configure product eligibility for VAT exemptions, control widget visibility, and manage carts containing eligible and non-eligible products.

The DIY Tax Exempt Checkout app includes a **Product eligibility** setting that allows merchants to control when the tax-exempt widget appears on the checkout page based on the products in the customer's cart.

This feature is particularly useful for merchants that sell a combination of products that qualify for VAT exemptions and products that do not.

Understanding Shopify's VAT Exemption Limitations

Shopify applies customer-level VAT exemptions to the order rather than allowing the DIY Tax Exempt Checkout app to select individual products for exemption.

When a customer is designated as VAT exempt for a particular jurisdiction, Shopify applies the exemption to all applicable products in the order, regardless of whether individual products qualify for the exemption the customer is claiming.

For example, suppose a customer's cart contains two products:

- **Product A:** Qualifies for the customer's VAT exemption.
- **Product B:** Does not qualify for the customer's VAT exemption.

If the customer claims a VAT exemption through the app, Shopify can remove VAT from both products, even though Product B should remain subject to VAT.

This limitation makes it important for merchants to control when customers can request VAT exemptions.

The **Product eligibility** setting provides that control by determining whether the tax-exempt widget appears based on the contents of the cart.

Configuring Product Eligibility

### Enable Product Eligibility

Enable this setting to control the display of the tax-exempt widget according to product eligibility.

When disabled, the app does not use product eligibility to determine whether the widget appears.

### Eligible Product Tags

Enter one or more product tags that identify products eligible for VAT exemption. When entering multiple tags, separate them with commas.

Assign the applicable tags to products in your Shopify store. A product is considered eligible if it has at least one of the specified tags.

When Product eligibility is enabled:

- **No eligible products:** If none of the products in the cart have a designated tag, the tax-exempt widget will not appear.
- **All products eligible:** If every product in the cart has at least one designated tag, the tax-exempt widget can appear, allowing the customer to request a VAT exemption.
- **Combination of eligible and non-eligible products:** The behavior is determined by the **Carts with eligible and non-eligible products** setting.

**Important:** Product tags control the visibility of the tax-exempt widget. They do not change Shopify's tax calculations or restrict a customer-level VAT exemption to tagged products.

### Carts With Eligible and Non-Eligible Products

This setting determines whether the tax-exempt widget appears when the cart contains both eligible and non-eligible products.

**Hide the widget (Default)**

The tax-exempt widget will not appear when the cart contains a combination of eligible and non-eligible products.

This is the default and recommended selection. It prevents customers from requesting a VAT exemption through the app for mixed carts, avoiding situations in which Shopify could exempt products that should remain subject to VAT.

**Show the widget**

The tax-exempt widget will appear when the cart contains at least one eligible product, even if other products in the cart are not eligible.

If the customer successfully claims a VAT exemption, Shopify will apply the customer-level exemption to all applicable products in the order, including products that do not have a designated eligibility tag.

**Caution:** Selecting Show the widget can result in VAT being removed from products that do not qualify for the customer's exemption. Merchants are responsible for determining whether this behavior is appropriate for their business and tax obligations.

 Recommended Configuration

For merchants selling products with different VAT exemption eligibility, we recommend selecting **Hide the widget** for carts containing both eligible and non-eligible products.

This configuration helps prevent VAT exemptions from being applied to products that should remain taxable.

However, customers purchasing a combination of eligible and non-eligible products will not be able to request an exemption through the app unless they separate their purchases.

### Encourage Customers to Place Separate Orders

Consider informing customers that products eligible for VAT exemption should be purchased separately from products that are not eligible.

For example, you could display the following message on your website:

**"If you qualify for a VAT exemption, please purchase VAT-exempt eligible products separately from other products. Shopify cannot apply customer VAT exemptions to individual products within the same order."**

You may choose to display this information on product pages, in the shopping cart, or elsewhere on your website where customers can review it before checkout.

Separating purchases allows eligible products to be processed through a checkout where the customer can request an exemption, while non-eligible products can be purchased through a separate checkout with the applicable VAT.

 Product Eligibility Behavior Summary

| Cart contents | Hide the widget (Default) | Show the widget |
| --- | --- | --- |
| All products eligible | Widget displayed | Widget displayed |
| No products eligible | Widget hidden | Widget hidden |
| Eligible and non-eligible products | Widget hidden | Widget displayed |

The Product eligibility setting must be enabled for these rules to apply. Other app settings and checkout conditions may also affect widget visibility.

 Additional Considerations

- **Product eligibility is not tax validation.** The app uses the designated product tags to determine eligibility for displaying the widget. Merchants must identify and tag the appropriate products.
- **Product tags do not override Shopify's tax calculations.** Shopify remains responsible for calculating and applying VAT exemptions.
- **Mixed carts require a business decision.** Merchants must choose whether to suppress the tax-exempt widget or permit a customer-level exemption that may affect non-eligible products.
- **Separate checkouts provide an alternative.** Customers who need exemptions for only certain products can purchase those products separately from non-eligible products.

For additional information about Shopify's treatment of customer tax exemptions, refer to [Shopify's Tax Overrides and Exemptions documentation](https://help.shopify.com/en/manual/taxes/tax-overrides/).

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