Subject: Shopify VAT Bug for Northern Ireland – 20% Loss Due to Incorrect Calculation> > Hi everyone,> > I’ve reported this to Shopify Support multiple times but haven’t received a fix, so I’m reaching out here.> > The situation:> > - We’re an Austrian (EU) business with prices listed gross, including 20% VAT.> - For EU countries, Shopify correctly deducts VAT from the gross price (e.g., €120 gross → €100 net + €20 VAT).> - For Northern Ireland (which follows EU VAT rules under the NI protocol), Shopify handles it incorrectly.> > The problem:> > Instead of treating the price as gross, Shopify uses the net price (€100) as the base and adds 20% GB VAT — resulting in a €100 gross checkout price (€80 net + €20 VAT), instead of the intended €120.> > This leads to a 20% revenue loss per order from Northern Ireland.> > Ask:> > Shopify – when will this be fixed? This is a serious error for merchants under OSS. Has anyone else faced this or found a workaround?> > Thanks in advance!
Topic summary
An Austrian merchant reports a critical VAT calculation bug affecting Northern Ireland orders, resulting in a 20% revenue loss per transaction.
The Issue:
- Prices are set as gross (including 20% VAT) for EU customers
- For most EU countries, Shopify correctly deducts VAT from the gross price
- For Northern Ireland (which follows EU VAT rules), Shopify incorrectly treats the net price as the base and adds 20% VAT on top
- Example: €120 intended price becomes €100 at checkout (€80 net + €20 VAT)
Attempted Solutions:
- OSS (One-Stop Shop) registration
- Country-specific tax settings
- Manual tax overrides
- Third-party tax apps
None of these workarounds resolved the issue. Manual tax adjustments cause problems for other UK regions (England), where customers would be double-taxed.
Current Status:
The merchant has disabled shipping to Northern Ireland entirely after weeks of unsuccessful communication with Shopify Support. The issue remains unresolved and poses a significant problem for OSS-compliant merchants.
I’ve also encountered issues with Shopify’s VAT calculation for Northern Ireland. Here are potential solutions:
Possible Solutions
- Register for One-Stop Shop (OSS) scheme Submit a single VAT return for EU sales, including Northern Ireland.
- Use Country-specific registration: Set up registration for Northern Ireland with correct VAT rates.
- Tax Overrides: Create overrides for specific products or regions.
Workarounds
- Manual VAT calculation: Calculate VAT manually for Northern Ireland orders.
- Third-party tax apps: Explore apps that integrate with Shopify and support OSS compliance.
Consult a tax professional for guidance.
I’ve tried that all but it doesn’t help. If I use manual tax, you can only raise the price by 20% to collect 20% VAT for North Irland but that means a customer from England gets charged 20% more and gets taxed 20% at delivery. Tried all combinations and workarounds, that’s a serious issue.
Have you sort it?
No, I’ve deactivated North Irland now in my shipping profile. Been texting to shopify support for weeks, at this point it’s just ridiculous.