Over the past few weeks, several Shopify merchants have noticed a change in how the Google & YouTube app reports conversion values to Google Ads. Specifically, since the beginning of September, conversion values have started to include VAT (or tax), which has confused merchants, resulting in inflated conversion reporting and inaccurate ROAS data.
The Issue Identified by Shopify Merchants
According to a post shared in the Shopify Community, merchants noticed that the Google & YouTube app began reporting higher conversion values. For example, one user noted that for every €10,000 in net sales (excluding VAT), their Google Ads account now shows around €12,100 in conversion value.
Understandably, this led some to believe that the tracking had broken or was misreporting data. However, in reality, what’s happening is a shift in how the app sends transaction values to Google Ads, now including VAT or tax in the total.
Why This Change Makes Sense
While this may initially seem incorrect, the inclusion of VAT or tax in conversion tracking is standard practice.
Typically, your conversion value should reflect the total sales value, including VAT or tax, but excluding shipping costs.
In most regions, such as the UK or EU, the product price shown to customers already includes VAT. Therefore, reporting conversions excluding VAT would result in an understatement of the actual sales value generated by your business.
In other words, this change doesn’t mean your tracking is broken; it simply means Google is aligning the app’s reporting with industry norms.
Adjusting Your ROAS Calculations
If your reported ROAS suddenly looks higher than before, it’s not because performance has increased; it’s because the conversion values have increased due to VAT inclusion.
To fix this, you need to recalculate your ROAS to account for the VAT-inclusive data. For example, if your store’s VAT rate is 21%, your new ROAS will appear about 21% lower than before. However, this reflects a more accurate representation of your total sales value.
I’ve personally always included VAT and tax in ROAS calculations for over a decade. This update brings consistency between merchants and simplifies comparisons across different tracking setups.
For Those Who Prefer Custom Tracking
If you don’t want VAT or tax included in your Google Ads reporting, you can always switch to a custom conversion tracking setup.
Shopify allows you to install custom tracking scripts using Customer Events or Shopify Pixels. You can fully disconnect the Google & YouTube app from Google Ads and implement your own event tracking instead.
If you’d like to set up your own conversion tracking, you can use my FeedArmy Conversion Tracking Script, which is free to use and allows complete flexibility to define precisely how your conversions are tracked.
Final Thoughts
This change from Google and Shopify may cause some confusion, but it’s ultimately a move toward standardization.
If your conversion values now include VAT or tax, don’t panic. Just update your ROAS calculations and you’ll be fine.
For those who prefer complete control over their tracking setup, custom tracking through Shopify Customer Events or a third-party script (like my own) remains a reliable option.
If you’ve experienced this issue or have questions about your setup, please feel free to leave a comment or reach out to us directly. I’d be happy to help you ensure your conversion tracking remains accurate.
Don’t you mean the ROAS will appear higher if the conversion value increased?
You are absolutely right Alyssa, thank you for pointing that out. I have now updated the article.