Sales Tax (VAT) not being charged on all items since 1st November

[ACCL]

Since 1st November it looks like Shopify has not been charging our B2C or B2B customers sales tax (VAT in the UK) on all order lines. Our products fall under either a 0% tax rate or a 20% tax rate. At the moment Shopify is charging 0% on everything.

It look like there was a release of new functionality release according to the change log - https://changelog.shopify.com/posts/shopify-tax-has-expanded-to-the-european-union-and-united-kingdo...

Is anyone else experiencing this problem ? It may come as a nasty surprise to others at the end of the month when they do their financial reconciliation

[shubify]

Hi there, this is most likely related to a Shopify registrations logic change and not the Shopify Tax release. I'd recommend:

1. Making sure your registrations have been set up correctly. Are you registered everywhere you collect VAT? Alternatively, do you have registrations that cover where you collect VAT? (OSS, IOSS, etc.) You should have received an email about this change.

2. Double-checking your product categories within Shopify. If your products are mis-categorized, they may fall under zero-rated product categories.

If neither of these solutions work, please message me your shop URL and I'm happy to help out! shub(dot)gaur(at)shopify(dot)com

[ACCL]

Hi
Thank you for your reply.
We have been operating two sites successfully for a number of year. Our registration is set up correctly and our products are categorised correctly.
We have reverted to the Basic service under Shopify Tax and this has resolved the problem. We just have 14 days of trading where no tax was charged or paid for by our customers and this has been referred to Shopify Support.

[shubify]

Hi!

Glad it all worked out for you! One final place I would check if I were you is your overrides. It seems like you might have some 0% VAT rate overrides set up for your store. If Basic Tax does the job for now, that's great too- but if you ever want to switch again, please message me at the email above and I'm happy to walk through it with you live to make sure your settings / collections are working.