This article outlines how Link My Books allocates and assigns tax line items from Shopify orders to accurately account for them.
For orders shipped to the United Kingdom, Australia or New Zealand
Tax Lines in orders where the country is GB, AU or NZ will be merged into:
Shopify Sales - Principal.
Shipping Tax Lines in orders where the country is GB, AU or NZ will be merged into: Shopify Sales - Shipping.
For orders shipped to the United States or Canada
United States Tax Lines will be allocated to: Shopify Sales Tax - Sales Tax-US.
Canadian Tax Lines will be allocated to: Shopify Sales Tax - Sales Tax-CA.
For orders shipped to other countries
All other countries Tax Lines will be allocated to: Shopify Sales Tax - Tax.
For orders where you (the seller) are not responsible for tax
💡 The channel_liable field informs merchants that another party is responsible for sales tax remittance, which then helps merchants better understand the tax that they are responsible for.
If channel_liable is true then Tax Lines will not be merged and regardless of destination country will be allocated to:
Shopify Sales Tax - Tax Collected
Shopify Sales Tax - Shipping Tax Collected.
For these orders there will be a corresponding line item for the tax remitted allocated to:
Shopify Sales Tax - Tax Remitted
Shopify Sales Tax - Shipping Tax Remitted.
VAT amounts not matching what you expect?
If you notice VAT amounts in Link My Books that don't match what you see in Shopify, here are a few things to check:
Verify your tax mappings in the Setup Wizard: Go to your account's Setup Wizard and review the tax section. Make sure you have completed the wizard fully — if the wizard was not finished or was recently re-run, older sent settlements may still use the previous tax configuration. You may need to rollback and refresh affected settlements for updated mappings to take effect.
Check your destination country settings: If non-UK or non-domestic sales are showing with 20% UK VAT, the issue is likely that your account isn't splitting sales by destination country. Review your destination country logic settings and ensure the country group mappings are configured correctly.
If you've checked all of the above and the VAT amounts still don't look right, please contact our support team with a screenshot of the settlement showing the discrepancy and we'll investigate for you.
If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].