We've identified inaccuracies in tax calculations for international orders within the Royal Click and Drop system. Despite our Shopify platform accurately pricing and taxing orders, an additional tax amount is being erroneously added when processed through Royal Mail Click and Drop, resulting in incorrect totals.

To illustrate this issue, please see the following order example:

1. Within our international Shopify order, item prices are clearly displayed, with the subtotal in EURO inclusive of tax at €17.99. The total order value is €102.80, equivalent to approximately £87.82 based on the current exchange rate.

2. However, upon importing the order into Royal Mail Click and Drop via Shopify-Click&Drop integration, we've noticed through the order details displayed in Click&Drop that an additional tax of £15.37 being added, resulting in a total price of £103.19 (£87.82 + £15.37).

This discrepancy is unacceptable as the tax was already accounted for in the individual product prices and should not be added again. This is only one example, however we've noticed this issue affecting most of our international orders. This discrepancy have significant implications for our business:

1. It impacts our decision-making process regarding postage options. For instance, when an order's total falls below €150, we typically choose the postage method of MTK (International Tracked). However, the incorrect addition of extra tax pushes the total above this threshold, leading us to select a different method, MPR (International Business Parcels Tracked). This adjustment is necessary to avoid customers being asked to pay additional taxes due to the erroneously inflated order value.

2. Orders falling under €150 qualify for IOSS processing, which involves paying taxes to IOSS once a month for all EU orders below this threshold. However, due to Royal Mail's erroneous tax addition, we end up prepaying tax through MPR to Royal Mail as well, resulting in double taxation - once to IOSS and once to Royal Mail (prepaid).

While we've managed to workaround the issue temporarily by manually creating orders and labels on Royal Mail Click and Drop, this is not a sustainable long-term solution. We have already contacted the Royal Mail customer support team and technical team whom were unable assist. We suspect that the issue arises through the integration between Royal Mail Click and Drop and Shopify. Therefore, we kindly request this matter to be investigated.

Many thanks.