How to utilize Shopify’s Checkout UI extensions to verify VAT Number

As e-commerce continues to flourish globally, businesses often need to comply with various tax regulations, especially when selling across borders. A common requirement in Europe is verifying Value Added Tax (VAT) numbers for business-to-business (B2B) transactions. Shopify, a leading e-commerce platform, provides tools like Checkout UI Extensions to help merchants simplify and enhance the checkout process. In this guide, you'll learn how to use these extensions to effectively verify VAT numbers.

Understanding Checkout UI Extensions

Checkout UI Extensions are a powerful part of Shopify’s customizable checkout platform. They enable developers to create tailored workflows and interfaces that integrate seamlessly into Shopify’s checkout. By leveraging these extensions, you can:

• Customize the checkout experience.
• Enhance functionality with features like VAT number verification.
• Ensure compliance with regional tax laws while maintaining a professional customer experience.

Steps to Implement VAT Number Verification

1. Prerequisites

• Ensure your Shopify store is on a Shopify Plus plan to access advanced checkout features.
• Have a working knowledge of JavaScript and the Shopify API.

2. Set Up Your Development Environment

• Install necessary tools:
  • Node.js
  • npm
  • Shopify CLI
• Authenticate and create a new app using Shopify CLI:

shopify app init

• Select Checkout UI Extension when prompted.

3. Create the Extension

• Navigate to your app directory and generate a new checkout UI extension:

shopify extension generate

• Select Checkout UI and configure the extension.

4. Develop the VAT Number Verification Logic

• Open the generated code in your preferred code editor.
• Integrate with an external VAT validation API, such as the European Commission’s VIES API, to validate entered VAT numbers.

Example Implementation:

import { useState } from "react";
import {
  TextField,
  Button,
  reactExtension,
  useBuyerJourneyIntercept,
} from "@shopify/ui-extensions-react/checkout";

export default reactExtension("purchase.checkout.contact.render-after", () => (
  <Extension />
));

function Extension() {
  const [vatNumber, setVatNumber] = useState("");
  const [isVatValid, setIsVatValid] = useState(true);

  useBuyerJourneyIntercept(async ({ canBlockProgress }) => {
    const validationResult = await validateVAT();
    setIsVatValid(validationResult);

    return canBlockProgress && !validationResult
      ? {
          behavior: "block",
          reason: "VAT number is not valid",
          errors: [
            {
              message: "Please provide a valid VAT number",
            },
          ],
        }
      : {
          behavior: "allow",
        };
  });

  const validateVAT = async () => {
    const response = await fetch(
      `https://api.vatcomply.com/vat?vat_number=${vatNumber}`
    );
    const result = await response.json();
    return result?.valid || false;
  };

  return (
    <>
      <TextField
        error={isVatValid ? "" : "Please provide a valid VAT number"}
        required={true}
        label="VAT Number"
        value={vatNumber}
        onChange={setVatNumber}
      />
    </>
  );
}

5. Integrate with Shopify Checkout

• Configure extension settings in your Shopify Admin to ensure it appears at the desired step in the checkout flow.
• Deploy the extension using the Shopify CLI:

shopify app deploy

6. Test the Extension

• Thoroughly test the extension in a staging environment to handle scenarios such as:
  • Invalid VAT numbers.
  • Network errors.
  • Different VAT formats.

7. Deploy to Production

• Enable the extension on your live store.
• Monitor its performance and gather user feedback to refine the functionality.

Best Practices

• User Experience
  • Label the VAT number field clearly.
  • Provide immediate and friendly feedback on validation results.
• Error Handling
  • Implement robust error handling for network interruptions and invalid responses.
• Privacy and Compliance
  • Avoid storing VAT numbers unnecessarily.
  • Use secure methods for API communication.

Conclusion

By leveraging Shopify Checkout UI Extensions, you can integrate VAT number verification to ensure compliance with European tax regulations. This feature provides a seamless checkout experience for B2B customers, fostering trust and professionalism. Set up your development environment, create the validation logic, and integrate it into your Shopify checkout for a smoother, compliant shopping experience.