Shopify Tax randomly charging tax incorrectly

[jgd1955]

I help manage a store climb-europe.com and upgraded to the new Shopify tax. Most of our products (maps, guidebooks) are zero rated in the UK and we have used the category Books in media for all of those products.

Most of the time this works and no VAT is added to an order for UK shipments, but randomly Shopify is adding 20% VAT to some orders. There doesn't seem to be any reason for it.

Anyone else experiencing the same?

[PK2023]

Hi,

We have a bit different but similar issue going on. In our country the VAT is 9% for shipping and for some reason at the check out the VAT "charged" for a 8.95€ shipping is almost 10€ which doesn't make sense at all that it is more than the actual shipping cost. Shopify has just ghosted me with this even after reaching out to them multiple times. Please let me know if you get any reasons behind this weird VAT behaviour since it might be related.

[mdodesign]

We have just experienced this today! Turns out that the Shopify Tax system that calculates the VAT on products based on their category isn't very accurate. If a product is a Mug it charged the VAT if it was a Greeting Card it didn't charge VAT.

We have changed out Tax Service back to "Basic Tax" and resolved our issue.

Go to: Settings > Taxes and duties > United Kingdom > Tax Service

Setting this to Basic Tax resolved our issue.