How do I fix incorrect VAT calculations in Shopify for EU orders?

How do I fix incorrect VAT calculations in Shopify for EU orders?

FrancescaVivida
Shopify Partner
4 0 1

We have an issue with a number of international EU orders with incorrect VAT calculations within Shopify. The calculations are not happening as we expect and Shopify says that they would:

 

Tax = (Tax Rate X Price) / (1 + Tax Rate)

See examples in attachment. It isn't obvious how Shopify are calculating the 

 

Shopify Help team for Taxes are impossible to get hold of directly. I am hoping someone on here can help? Or one of the Tax Team at Shopify can reach out to assist us. 

Screenshot 2023-12-13 at 14.16.48.png

 

   

 

Reply 1 (1)

TeemuEAS
Shopify Partner
127 1 23

Hi FrancescaVivida, 

 

Shopify is doing this simply wrong as we have discussed. Shopify has had an open ticket for the faulty calculation since November 2023 (42955823). 

 

Removing Discount amount that contains taxes from price without taxes, illegally reduces taxable amount. This is not good from legislation point of view and confuses your customers as well. EAS Help Centre article here: https://help.easproject.com/how-shopify-calculates-taxes-when-percentage-discount-applied

 

EAS is the leading cross-border automation provider: https://apps.shopify.com/eas-eu-compliance

 

 

 

EAS EU & UK Compliance app is a fully automated European VAT solution for Shopify.