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

Accounting & Taxes

Topic summary

Shopify is applying Portugal’s standard 23% VAT (value-added tax) to products that qualify for a reduced 13% rate. The poster asks how to set 13% for a specific product/category.

Key guidance:

  • If using Shopify Tax (Shopify’s built-in tax calculation service) and products are correctly categorized in the admin, the reduced rate should apply automatically. If it doesn’t, contact support to log and fix the issue.
  • If not on Shopify Tax, use a tax override: first place all eligible products into a product collection, then set a tax override for that collection in Settings > Taxes & Duties. Individual product-level overrides aren’t supported; collection-level is required.
  • An official guide on tax overrides was shared: https://help.shopify.com/en/manual/taxes/tax-overrides

Next steps/action items:

  • For a potential bug or misapplication under Shopify Tax, email shub.gaur[at]shopify.com with store name, affected categories, and example orders to prioritize a fix.

Status: No final resolution yet. User will report details to support; outcome pending.

Summarized with AI on December 12. AI used: gpt-5.
3

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!