Attribution & Analytics

Should Tax Be Included in Ecommerce ROAS?

Tax collected from the customer is usually money the business collects on behalf of a tax authority rather than economic revenue it gets to keep. For profitability analysis, excluding tax often produces a cleaner view.

Platform conversion values may differ

Depending on your Shopify integration and configuration, Meta or Google purchase values may include or exclude taxes. That can create ROAS discrepancies even when conversion counts match.

Consistency matters most for optimization

If Google receives tax-inclusive order value while Meta receives tax-exclusive value, comparing platform ROAS directly becomes harder.

For contribution, use net economics

A useful profit model starts with revenue the business actually retains, then subtracts product and other variable costs. Tax liabilities should not be treated as margin.

International stores need extra care

VAT/sales-tax treatment differs by market and accounting setup. Use your accounting definitions and current legal guidance for financial reporting.

The marketing team should document exactly what “revenue” means in every dashboard before debating ROAS differences.

Need the real economics laid out?

If your Shopify, Meta and Google revenue figures differ because of tax, shipping or discount handling, contact us. We can help normalize the measurement.