Incorrect VAT being charged on my website

[Lee84]

Hello,

I am hoping that someone may be able to help me out. I have tried to email and phone Shopify (UK) both are un-used and tell me to use the AI chat, this in itself is useless and will not connect me to a support advisor and just keeps looping.

My issue is regarding VAT, my store is set up and run in the UK and the VAT is set up for GB 20% which is correct. I noticed yesterday that whilst creating a manual order from an invoice that the VAT calculated was not matching, it is actually calculating it at 16%. I have used the guide and everything seems to be correct in the back-end. 

Has anyone else experienced this or know of a "fix" or even a way to get in touch with a human over at Shopify?


Kind Regards
Lee

[Kolawole5050]

I hear you—Shopify’s support system can be frustrating when you just need to speak with a real person. Regarding your VAT issue, a 16% calculation instead of 20% suggests one of the following might be happening:

1. Manual Order Settings – Sometimes, VAT settings for manual orders don’t match the main store settings. Check Settings > Taxes and Duties to confirm the rate applies to manual invoices.

2. Product-Specific Tax Settings – If some products have a custom tax rate set, Shopify might be pulling a different percentage. Check under Products > Edit Product > Tax Overrides.

3. Draft Order Tax Calculation – Shopify sometimes calculates VAT differently for draft/manual orders. Try creating a test order to see if it happens again.

4. Shopify Tax Configuration – If you recently updated tax settings, Shopify might not have applied them correctly. Try toggling the tax settings off and back on.

[Lee84]

Hi All,

I have managed to resolve the issue now. Thank you all for your replies and help.

Kind regards
Lee