VAT of shipping not calculated when product is free

Technical Q&A
1

Hi There,

When I offer a product with 100% discount, so price is ZERO, Shopify does not apply taxes to shipping cost. Charge and report tax over shipping is a legal requirement, so I think it is Shopify defect.

Two samples: First one shows VAT calculated over the sum of product price (8.99) and and price of shipping (4.99). The second one has no VAT at all, so it is illegal.

Can anybody help, please?

Regards

Before discount
Before discount800×454 12 KB

After discount tax is gone
After discount tax is gone820×435 11.3 KB

2

Hi PRP

Yes we are seeing this as well.

Did you get any further on resolving this?

Thanks

Grant