Why is Shopify separating VAT on some orders, but not others (UK)

Floranoctemshop
Excursionist
13 0 5

I am based in the UK and currently only take orders from UK customers, but since the start of the year, I've noticed that some of my orders show item prices excluding VAT and others show them including VAT. I've also noticed that when the VAT is excluded from the item prices, Shopify includes VAT for the shipping fee.

As it doesn't happen on every order, I'm wondering if this is some kind of bug?

It happens on random items/orders and doesn't seem to be related to where the customers live - all my orders are from within the UK.

The attached images show what I'm taking about:

 

Floranoctemshop_0-1610615472635.png

In the first image, the prices are excluding VAT and the VAT figure at the bottom also includes shipping. It also just says "GB VAT 20%".

 

Floranoctemshop_1-1610615524745.png

In the second image, at the bottom it shows "GB VAT 20% (included)" and there isn't a VAT charge for shipping.

 

Is this happening to anyone else?

 

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modelmatic
Tourist
7 0 0

Yes!

It's driving me insane.

I've been on Support chat three times about it, and nobody understands.

I got a great example tonight, where two different people, both in the UK ordered exactly the same items. One was charged £79.99 and the other £79.98.

I've also noticed it doing strange things with tax on shipping, even though I've opted to not include tax in shipping.

By best guess is that for some reason it's treating some UK customers are being overseas.

... apparently I have a tax person looking at this right now.

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modelmatic
Tourist
7 0 0

Some screenshots for reference...

Screen Shot 2021-01-14 at 21.07.08.pngScreen Shot 2021-01-14 at 21.07.34.png

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modelmatic
Tourist
7 0 0

Was on chat for hours, and still no solution.

Awaiting to hear from them via email.

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Mr-Flo
Explorer
63 8 30

Lets be honest, shopify is very very bad with that kind of stuff (taxes, multi options etc.), but shines with other integrations. 

Iam still confused why they are operating within the EU and have not done anything about (rounding issues, etc.). Taxing, setting up differnt taxes on items by tags etc. Issues with Shipping calculation when you have differnt taxes in the order cart. 

You can see their focus is on US and Canada, and don't care about EU clients, well maybe they care if you are using shopify plus. 

Just my 2 cents. 

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Floranoctemshop
Excursionist
13 0 5

Since I made my post, I have noticed that the transactions with this problem are being processed through Shop Pay, is that the same for everyone?

Payments through Shopify Payments, PayPal, and Clearpay are all fine, so I think that this "Shop Pay" has something to do with it.

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modelmatic
Tourist
7 0 0

Here's what I finally got from support....

This behaviour can occur when the setting to Include or exclude tax based on your customer's country is checked, and the customer goes back a step in the checkout to use an accelerated checkout method like Shop Pay, as your customers did in the examples of orders XXX and YYY. The prices are reverted to their pre-tax value, and tax is seen separately in the final stage of the checkout.

Our developers are aware of this and are working on improvements to the checkout flow with accelerated checkouts. It's important to note that you are still properly displaying the price with VAT included on the product page and in the standard checkout, but I understand that it could confuse customers, and we are working on improving this. I see that you have turned the Include or exclude tax based on your customer's country feature off, and that will also avoid this display issue. Thank you for your feedback on this.

I turned the feature off because it was charging customers the wrong amount, not as a solution.

This needs to be fixed.

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SULMANSHAH
New Member
1 0 0

I am also facing the same problem on my website, Some time it separating vat and sometimes showing with vat..some customers are complaining about wrong prices, is anyone found a solution for it?

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modelmatic
Tourist
7 0 0

As far as I can tell, there is no solution.

Shopify needs to fix it!

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