InStock review for Shopify Collective
March 3, 2026
AWFUL. Absolutely zero understanding from Shopify on how UK VAT and Tax works. Listing collective suppliers that offer 10% margin on goods, yet really there charging you 10% to sell there product! So yeah amazing business model, losing money for selling suppliers products because at the last minute they add 20% vat onto the charge to the retailer. What on earth is going on. Its disgusting that they have no solution in place for this. Sam Hampton of shopify support suggested we paid for a bulk editor like "Matrixify" or "Bulk Price Editor" that might be able to solve the issue. So shopifys are basically telling you collective in the UK is a broken model. I cannot believe they have not fixed this issue and automatically added 20% on the price to any store that is collecting tax. In response to Shopify response - I can confirm this issue is not resolved, you built this with USA in mind and not the UK. Its a mess. Fix it.
We recently launched an update to support tax-inclusive pricing, which should solve the issue you've outlined. When both you and your supplier use tax-inclusive pricing and your supplier collects tax, your margins as a retailer will be respected, as long as you reclaim your tax credit. Here is the support article for your reference: https://help.shopify.com/en/manual/online-sales-channels/shopify-collective/retailers/taxes We hope you'll consider Shopify Collective again given this update.
