A UK-based Shopify store owner discovered their website was calculating VAT at 16% instead of the correct 20% rate when creating manual orders, despite backend settings appearing correct.
Troubleshooting suggestions provided:
Verify manual order VAT settings under Settings > Taxes and Duties
Check for product-specific tax overrides that might apply different rates
Test draft order tax calculations, as Shopify may handle them differently
Toggle tax settings off and on to refresh the configuration
Resolution: The issue was successfully resolved by the original poster, though the specific solution was not disclosed.
Side note: The poster experienced difficulty reaching human support through Shopify UK’s email, phone, and AI chat channels.
Summarized with AI on October 30.
AI used: claude-sonnet-4-5-20250929.
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?
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:
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.
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.
Draft Order Tax Calculation – Shopify sometimes calculates VAT differently for draft/manual orders. Try creating a test order to see if it happens again.
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.