How can I apply two different VAT rates to a single product?

Accounting & Taxes

Topic summary

Goal: Apply two different VAT rates to a single product in Shopify (e.g., €800 at 23% and €200 at 13.5% within a €1,000 item). The business must display a single full price per item on the site.

Current platform behavior: Shopify tax overrides can be set only at the collection (whole product) level. They cannot apply to parts of a product (e.g., labor vs. goods) or to variants/components.

Shopify’s suggestion: Use a bundle. This conflicts with the requirement to show a single, all-in price on the product page, though the full combined price can appear at checkout.

Workarounds discussed:

  • Build the mixed VAT into the product’s single price (absorb the split internally).
  • Split into two products (labor and goods) and enforce a bundle rule so both must be purchased together; the cart shows the full price.

Latest update: A later re-check found no new Shopify features enabling mixed VAT per single product.

Status: No native solution; only workarounds. The issue remains open without a definitive resolution.

Summarized with AI on December 30. AI used: gpt-5.
1

Hi there,

I need to know how to apply 2 VAT rates to one product. The labour for assembling the product is at 13.5% and the rest is at 23%. For example a product selling for €1000 is made up of €800 at 23% and €200 at 13.5%. We could build this into each product on our old system but I need to be able to do the same on Shopify. The only solution Shopify suggested was a bundle but this won’t work on our website as we need to display the full price for each item. Can anyone help please.

2

Any ideas anyone please ? I really need to get this sorted

3

I tried looking into this last year, and the only thing that came up was a tax override in the Settings, but it is applied to a collection, and collections are whole products. So you couldn’t do a tax override with variants or, in your case, labor and other. The workaround is either to build the VAT into your price or split your product into two products (labor) and (other) and then set a bundle rule, and the customer has to check out with both so the full price is displayed in the checkout cart. I started looking into it again a year later to see if any feature had been added, but I couldn’t find anything.