You might have noticed that the revenue displayed on your Shopify back office is not quite the same as the revenue displayed in your Quanticfy dashboards.
Where is the issue coming from?
This is due to the fact that Quanticfy does not gather the Value Added Tax (VAT) per product. As we are customer-centric and not product-centric, we gather, for each order:
the reference of the product(s)
the quantity of product(s) sold in the order
We do not yet collect the specific VAT applied to each product from your store, only the price of products and how many products were sold per order. We recalculate the order amount by multiplying the number of product(s) by the unit price. This allows us to perform product performance analysis.
Why does Quanticfy need to know VAT?
Shopify does not provide us with prices excluding taxes for your shop.
Yet, we need the prices excluding tax to match them with media spending (cost) data that are excluding taxes by default, so we can provide you with ROAS and EMS. (We could not do it by having prices including taxes on one hand, and prices excluding taxes on the other).
At the moment, our system does not allow us to gather VAT information from your shop product by product. We have to reconstruct an average VAT rate for the whole shop and use it to deduce the prices excluding tax.
How do we calculate the average VAT rate?
We are currently calculating the average VAT rate like so:
Average VAT rate = (VAT rate 1 * number of products with rate 1) + (VAT rate 2 * number of products with rate 2) / total number of products
So for instance, if you have in your shop, 73% of your products with a 20% VAT, and 27% of your products with a 5.5% VAT, the average VAT rate in the Quanticfy system for your shop would be:
(0.73*20) + (0.27*5.5) = 16.085%
We then reapply this average VAT rate (here, 16.1%) to your revenue.
This might cause a slight discrepancy between the revenue displayed in our dashboards versus that in the Shopify back office.
⚠ This will change in the future, as we are working on improving our system to manage different VAT rates at the product level.
About prices in Quanticfy
In Quanticfy, as of now, all prices regarding attribution are displayed excluding taxes, and all prices in our business and products dashboards are displayed including taxes, excluding shipping costs.
We are currently working on having prices excluding taxes available everywhere, for more clarity.