How to Change Tax Rate on Shopify (23% to 13%)?

[100papas]

I’m currently facing an issue with taxes on Shopify. I’m based in Portugal, where the standard VAT rate is 23%, and Shopify is automatically applying this rate to my products. However, my products qualify for a reduced VAT rate of 13%.

I’ve checked the “Taxes and Duties” settings and the product tax settings, but I can’t seem to find an option to apply the 13% VAT rate specifically to this product.

Can anyone guide me on how to adjust the tax rate for this particular product? Is there a way to override the default tax rate for just one product or category?

I tried ChatGPT but he cannot guide me through this, i would really appreciate your help, i'm really struggling with this!

Thanks in advance!

[Bundler-Manuel]

Hello @100papas  Have you gone through this official Shopify guide regarding Shopify exemptions yet? https://help.shopify.com/en/manual/taxes/tax-overrides 
If you haven’t, you should check it out and see how you could apply for the one in your circumstance to possibly get the reduced rate at 13% 

[shubify · Accepted solution]

Hi there, hope I can help with this!

If you are on Shopify tax and have categorized your products within Shopify's admin appropriately, then this reduced rate should be automatically applied. If that's not the case, please reach out to support so we can log and fix this issue ASAP. 

If you are not on Shopify Tax and would like to set a product override, you will need to create a product collection and then create an override for that collection after you add all of your products into it. This process is a little more manual and slightly annoying, but it is still a valid workaround. You can't do this for individual products- you'll need to sort them into a collection first, and then set a tax override on the collection in Taxes & Duties within Settings.

Hope this helps!

[100papas]

Hey! 

How can i report then? 

[shubify]

Please message me at shub.gaur[at]shopify.com with your store name, the affected categories, and any order examples so we can prioritize and fix asap!