Set up tax for VAT-inclusive prices

How Fabrik Analytics reads tax from Shopify, and when to switch on Manually calculate tax so VAT is taken out of prices that include it.

3 min readUpdated 7 October 2026

Net sales should never include tax. Fabrik Analytics reads the tax Shopify charged on each order and leaves it out. If Shopify records no tax but your prices include VAT, you can tell Fabrik the rate so it takes the VAT out for you.

Before you start

Who: agency staff who can open the brand's Settings, or the owner of a brand run without an agency.
Check one recent order in Shopify. If it shows a tax line, you do not need this setting.

Step by step: switch on manual tax

Open the brand and choose Settings, Financial.
Tick Manually calculate tax (prices include VAT but Shopify records no tax).
In Tax rate (%), enter your rate, for example 20.
Select Save changes. A message confirms Financial settings saved.
A second message reads "Re-sync Shopify from Integrations to apply the assumed tax rate to historical data." Open Settings, Integrations and re-sync Shopify.

Step by step: switch it off

Open Settings, Financial.
Untick Manually calculate tax.
Select Save changes, then re-sync Shopify from Integrations so past days are worked out again.

What you will see

After the re-sync, net sales on the Dashboard, Trading and the P&L exclude the VAT worked out at your rate.
The rate is applied only to orders that carry no tax at all in Shopify. It is taken out of products and shipping alike, so gross sales, discounts, shipping and returns are all on the same VAT-free basis, and total sales still equal Shopify's.
Orders that do carry tax in Shopify continue to use the tax Shopify recorded.

A worked example

Fellwick sells a jumper for 120, price including 20% VAT, and Shopify records no tax on the order.

	Without the setting	With the setting at 20%
Gross sales	120	100
Tax	0	20
Total sales	120	120

Total sales still match Shopify. Net sales, margin and every figure built on them now exclude the VAT.

Troubleshooting

Net sales look about a sixth too high. Prices probably include 20% VAT that Shopify did not record. Switch on manual tax at 20% and re-sync.
Net sales look too low after switching it on. Check the rate you entered, and that your prices really include VAT. Orders Shopify already taxes are not touched, so VAT is never removed twice. Correct the rate or switch the setting off, then re-sync.
"Failed to save": your role cannot change Financial settings. Ask the agency or your brand's owner.

Frequently asked questions

Do I need to set anything for tax?

Usually not. If your products are marked as taxable in Shopify, the tax Shopify charged is read from each order and left out of net sales automatically.

When should I switch on Manually calculate tax?

Only when your prices include VAT but Shopify records no tax on your orders, usually because products are not marked as taxable. Otherwise your sales would include VAT and read too high.

Does the change apply to past orders?

Only after a re-sync. When you switch it on, a message reminds you to re-sync Shopify from Integrations to apply the rate to historical data.

Can I use different rates for different countries?

No. The setting takes one rate for the brand. If you sell into several countries with different rates, mark products as taxable in Shopify so the real tax on each order is used.

Why does net sales differ from Shopify after switching it on?

Fabrik takes the configured rate out of prices, while Shopify reports no tax for those orders. The difference is the VAT Shopify did not record.