How VAT, OSS, Creativehub fulfilment, and Shopify settings work together
This article explains how to correctly handle VAT when you run your own Shopify store and use Creativehub + theprintspace for print production and fulfilment, without using our Merchant of Record service.
It also covers what you do not need to do — most artists don’t need VAT registration when starting out.
1. The Most Important Things to Know
- You do NOT need VAT or OSS just to start selling.
Most artists begin selling with no VAT registration and only consider it later if sales grow. - We handle VAT only on the print production and shipping we supply to you.
This is B2B VAT (your cost). - You handle VAT only on the retail sale you make to your customers.
Shopify manages this. - EU print orders are fulfilled from Germany.
This means EU orders are intra-EU supplies, NOT imports.
👉 The €150 import rule (IOSS) does not apply. - You should only have ONE EU fulfilment location in Shopify:
👉 “EU Fulfilment (Germany)”
(Do not add 27 locations — this causes problems.)
2. What We Do vs What You Do
✅ What we handle
- Print production
- Packaging
- Shipping from Germany
- VAT (on the fulfilment invoice we send you)
- Delivery and production logistics
✅ What you handle
- VAT on your retail sale to your customer
- Shopify tax setup
- Deciding when to register for VAT or OSS
- Your own business accounting
Remember:
Creativehub does NOT control VAT. Shopify does.
3. The €150 Rule Does Not Apply to Your Print Orders
Many artists misunderstand this.
The €150 rule applies only to imported goods entering the EU from outside the EU.
Because we print and ship EU orders from Germany, all EU orders are:
- Germany → EU customer
- Intra-EU transactions
- Subject to normal EU VAT rules, not import rules
- Allowed above and below €150
- Covered by OSS if you are registered
You are fully allowed to sell prints of any value to EU customers.
4. Do You Need VAT or OSS? (Simple Explanation)
🎨 For most artists: NO (at least not at the start)
You can begin selling without any VAT registration:
- Prices display correctly
- Checkout works correctly
- You comply with all rules
- You only need registrations when your sales increase
Below are the three main artist categories.
📍 If You Are Based in the UK
You may need:
- UK VAT registration if your UK turnover exceeds the UK threshold
- OSS registration if you want to charge EU VAT on EU sales consistently
BUT you do not need these to begin selling.
VAT on EU orders (UK-based artists)
Once registered for OSS, Shopify will:
- Charge VAT based on customer country
- Include VAT in prices for EU customers
- Let you file through a single OSS return
If not OSS-registered yet:
- Shopify may show no VAT until checkout — this is correct behaviour
- Customers may pay import VAT on delivery BUT only if goods ship from UK
- Your prints do not ship from the UK — they ship from Germany
- So customers are not charged import VAT
- You can still sell to the EU without OSS registration
📍 If You Are Based in the EU
You should normally:
- Register for VAT in your home country
- Consider using Union OSS for EU-wide sales
EU → EU print shipments are very straightforward.
OSS makes VAT reporting much easier.
📍 If You Are Based Outside the EU/UK
You generally do not need to register for VAT immediately.
You may need EU VAT if:
- You sell large volumes into the EU
- And the goods are fulfilled from Germany (EU)
- And you remain the seller of record
But this only applies once your business reaches a certain scale.
5. Correct Shopify Setup for VAT and EU Selling
Here is the correct configuration if you are using Creativehub + theprintspace fulfilment.
Step 1 — Add the EU fulfilment location
Go to:
Settings → Locations → Add location
Add:
“EU Fulfilment (Germany)”
Assign your Creativehub products to this location.
Step 2 — Do NOT add every EU country
This is a common mistake.
You only need one EU location.
Step 3 — Enable EU VAT collection (when registered)
Settings → Taxes and Duties → European Union
- Add your OSS VAT number (if you have one)
- Enable VAT collection
- Shopify will automatically calculate destination VAT
Step 4 — Turn on VAT-inclusive pricing for EU
EU law requires VAT-inclusive prices.
Shopify → Markets → EU → Tax settings →
✔️ “Include tax in prices”
Step 5 — Leave Creativehub alone
Creativehub’s fulfilment location does not influence VAT.
Shopify alone determines VAT behaviour.
6. Why VAT Might Only Show at Checkout
If you are:
- Not VAT registered (UK or EU), or
- Not using OSS yet
Then Shopify displays:
- Tax exclusive prices on product pages
- VAT added only at checkout (once customer location is known)
This is correct and legal.
7. Frequently Asked Questions
Q: Do I need VAT registration to start selling?
A: No. Most artists do not need to register until sales grow significantly.
Q: Do I need OSS to sell to EU customers?
A: No. OSS is recommended once sales grow, but not required initially.
Q: Do prints get imported from the UK into the EU?
A: No. All EU print orders are produced and shipped from Germany.
Q: Should I add lots of EU fulfilment locations?
A: No — only add one EU location (Germany).
Q: Why is VAT not showing on the product page?
A: Because you are not VAT registered yet. Shopify only adds VAT at checkout.
Q: Do I need to stop selling to the EU?
A: No — you can continue selling regardless of registration status.
8. Summary
Here’s the full process in one sentence:
We handle VAT on the print production, and you only need to worry about VAT on your retail sale — most artists don’t need VAT/OSS immediately, EU orders ship from Germany (not UK), the €150 rule doesn’t apply, and you only need one EU fulfilment location in Shopify.