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Tax from Shopify Not Showing on Posted Sales Invoices in Business Central

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Posted on by CU10070604-1

Hi community,

We need urgent assistance regarding a tax sync issue between Shopify and Microsoft Dynamics 365 Business Central.

Setup:

We are using the official Shopify connector to sync orders into Business Central.
Avalara is used in Shopify to calculate tax during checkout.
We are only charging tax in California and West Virginia.

Problem:

When a customer places an order in Shopify, the correct tax (via Avalara) is shown at checkout and on the Shopify order. However, when the order syncs into Business Central, the sales tax is missing from both:

The Sales Order
The Posted Sales Invoice
This results in incorrect accounting and financial records in BC.

Goal:

We want the exact same tax amount the customer sees on Shopify checkout to appear on the Posted Sales Invoice in Business Central.

What We’ve Checked:

Tax is enabled in BC, with Tax Area Codes and Tax Group Codes configured.
Sales orders are syncing successfully from Shopify.
However, no tax amount or breakdown is showing up in BC after the sync.

Questions:

How can we ensure Avalara-calculated Shopify tax syncs properly into BC invoices?
Do we need to configure custom Tax Area Codes for CA/WV linked to Shopify orders?
Is additional configuration or middleware needed to preserve Avalara tax data?

Any help or guidance would be deeply appreciated, especially as this is a time-sensitive issue affecting reporting and compliance.

Thanks,

Alex

Categories:

Dynamics 365 Business Central

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Holly Huffman 6,530 Super User 2025 Season 2 on at

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Good morning, afternoon, or evening depending on your location :)
Hope you are well today!

The issue you're facing—Shopify orders with Avalara tax not showing tax on Sales Orders or Posted Sales Invoices in Business Central—is a known limitation of the official Shopify connector. Here's a breakdown of the problem and how to resolve it:

Root Cause

Avalara tax is calculated in Shopify, and the tax amount is visible in the Shopify order.

However, the Shopify connector does not automatically map or transfer this tax into the Business Central Sales Order or Invoice.

The connector does not natively support Avalara tax breakdowns or line-level tax mapping [1].

Recommended Solutions
Option 1: Custom AL Code to Insert Tax Line
You can subscribe to the OnAfterCreateShippingCostSalesLine event in the Shpfy Order Events codeunit and manually insert a tax line into the Sales Order using the tax amount from the Shopify Order Header.
Here’s a simplified AL code snippet:
[EventSubscriber(ObjectType::Codeunit, Codeunit::"Shpfy Order Events", 'OnAfterCreateShippingCostSalesLine', '', false, false)]
local procedure AddTaxLineToSalesOrder(var SalesHeader: Record "Sales Header"; ShopifyOrder: Record "Shpfy Order Header")
var
    SalesLine: Record "Sales Line";
begin
    if ShopifyOrder."VAT Amount" <> 0 then begin
        SalesLine.Init();
        SalesLine."Document Type" := SalesHeader."Document Type";
        SalesLine."Document No." := SalesHeader."No.";
        SalesLine.Type := SalesLine.Type::"G/L Account"; // Or use a dedicated tax item
        SalesLine."No." := 'TAX-SHOPIFY'; // Create a G/L Account or Item for this
        SalesLine.Description := 'Shopify Tax';
        SalesLine.Quantity := 1;
        SalesLine."Unit Price" := ShopifyOrder."VAT Amount";
        SalesLine.Insert();
    end;
end;

This will add a single tax line to the Sales Order, not a detailed breakdown by item or jurisdiction.

Option 2: Use Middleware or Custom Integration
If you need line-level tax detail or jurisdictional breakdowns, consider:

A middleware solution (e.g., Celigo, eBridge, or custom Azure Function).

A custom API integration that pulls tax data from Shopify and injects it into BC.

Option 3: Use Avalara AvaTax for Business Central
If Avalara is critical to your tax compliance:

Consider using the Avalara AvaTax extension for Business Central.

This allows BC to calculate tax directly using Avalara, ensuring consistency with Shopify.

This may require disabling tax calculation in Shopify or aligning both systems carefully.

Troubleshooting Tips

Enable logging in the Shopify Shop Card in BC (Logging Mode = All) to inspect what data is being received [2].

Check the Shopify Order Header table in BC (Shpfy Order Header) to confirm the VAT Amount is being imported.

Use the Shopify Log Entries and Skipped Records pages to identify sync issues.

References
[1] Shopify Connector - Tax Amount Missing in D365 Sales Order
[2] Troubleshooting the Shopify and Business Central synchronization

Note: I collaborated with Copilot to help craft this response for clarity and completeness.
Hope this helps some!

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Jun Wang 8,202 Super User 2025 Season 2 on at

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I would suggest you to test creating orders in BC directly, not through shopify, and see if the tax is correct on SO and invoice. If it is correct, it maybe shopify doesn't work correctly with avalaria, or the other way around.

You then need to get support from either app provider to further troubleshoot.

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YUN ZHU 95,595 Super User 2025 Season 2 on at

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Hi, hope the following helps.

Set up taxes for the Shopify connection

https://learn.microsoft.com/en-us/dynamics365/business-central/shopify/setup-taxes?wt.mc_id=DX-MVP-5004336

https://community.dynamics.com/forums/thread/details/?threadid=25ec904e-f52f-ef11-840b-7c1e521c042d

https://community.dynamics.com/forums/thread/details/?threadid=f8f7402e-96a7-ef11-8a69-6045bdeb6458

https://archerpoint.com/business-central-shopify-connector-limitations/

Thanks.

ZHU

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Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

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May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/shopify/troubleshoot

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Jeffrey Bulanadi 8,760 on at

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Hi Alex,

You're absolutely right — this is a common issue when syncing Shopify orders with Avalara-calculated tax into BC using the standard connector.

Let’s break down what’s happening and what you can do:

1. Why tax is missing on synced orders
The Shopify connector does not natively support Avalara tax breakdowns. When orders are imported into BC:

Tax lines from Shopify are not mapped to BC’s tax calculation engine

BC recalculates tax based on its own Tax Area and Tax Group setup

If the Tax Area Code or VAT Business Posting Group is missing or mismatched, no tax is applied



2. Why Avalara tax appears in Shopify but not in BC
Avalara calculates tax at checkout in Shopify, but BC does not reuse that tax data unless:



You use Avalara AvaTax directly inside BC

Or you build a custom integration to inject tax lines into the BC sales document



3. How to resolve the issue
Here’s a checklist to help align tax between Shopify and BC:



Enable Avalara AvaTax in BC Consider using the Avalara extension for BC so both systems calculate tax using the same engine

Review Tax Area Priority settings On the Shopify Shop Card in BC, set the Tax Area Priority field to ensure correct state-level tax codes are applied

Use Customer Templates Define templates for CA and WV customers with:

Correct Tax Area Code

VAT Business Posting Group

Prices Including VAT setting aligned with Shopify

Inspect imported order data Use the Shopify Order Header and Shopify Log Entries pages in BC to confirm whether tax amounts are being received

Consider middleware or custom API if Avalara tax data is critical, use a middleware like Celigo or a custom Azure Function to:

Pull tax data from Shopify

Inject it into BC’s Sales Order or Invoice lines

Helpful references:

Set up taxes for Shopify connection – Microsoft Docs
Shopify integration issue with taxes – Reddit
Sync posted sales invoices from BC to Shopify – Celigo Help Center
Avalara AvaTax for BC – Avalara Marketplace

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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Mansi Soni 8,907 Super User 2025 Season 2 on at

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Hello,

You may need custom middleware or API logic to capture and push the exact tax amount from Shopify into BC. Alternatively, consider using Avalara’s native integration with Business Central for tax handling to maintain consistency

Hope this will help you as well!

Regards,
Mansi Soni

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Sohail Ahmed 11,148 Super User 2025 Season 2 on at

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Holly answer is more close to your requirements as i also faced same issue and extend my shpfy connector.

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