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VAT split on tax-inclusive orders

For stores with VAT- or GST-inclusive prices, we now use the tax rate Shopify publishes on each order line to separate goods from tax.

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Written by Lyndsey Bunting

What changed

For stores whose prices include VAT or GST, we now use the tax rate Shopify publishes on each order line to separate goods from tax.

What's fixed

  • Free-gift and fully discounted items no longer keep VAT inside revenue. The tax is now split out like on any other line.

  • Small rounding differences on discounted lines are gone. Gross, discount and tax now add up exactly to what the customer paid.

  • Exchange orders no longer book negative revenue. When a customer paid for an order with credit from a return, the order could show a negative gross revenue amount on a single line. Those lines now book normally.

Scope

  • Applies to orders from September 1, 2026. Earlier months are unchanged, so nothing already reported moves.

  • Orders from sources that don't publish a tax rate per line (such as Walmart and Amazon) keep the current calculation.

  • Orders paid with store credit still show that credit as a discount.

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