diff --git a/lib/open_food_network/xero_invoices_report.rb b/lib/open_food_network/xero_invoices_report.rb
index 5b346f9263..504bf03349 100644
--- a/lib/open_food_network/xero_invoices_report.rb
+++ b/lib/open_food_network/xero_invoices_report.rb
@@ -27,11 +27,11 @@ module OpenFoodNetwork
 
     def rows_for_order(order, invoice_number, opts)
       [
-        summary_row(order, 'Total untaxable produce (no tax)',       total_untaxable_products(order), invoice_number, 'GST Free Income', opts),
-        summary_row(order, 'Total taxable produce (tax inclusive)',  total_taxable_products(order),   invoice_number, 'GST on Income',   opts),
-        summary_row(order, 'Total untaxable fees (no tax)',          total_untaxable_fees(order),     invoice_number, 'GST Free Income', opts),
-        summary_row(order, 'Total taxable fees (tax inclusive)',     total_taxable_fees(order),       invoice_number, 'GST on Income',   opts),
-        summary_row(order, 'Delivery Shipping Cost (tax inclusive)', total_shipping(order),           invoice_number, 'Tax or No Tax - depending on enterprise setting', opts)
+        summary_row(order, 'Total untaxable produce (no tax)',       total_untaxable_products(order), invoice_number, 'GST Free Income',        opts),
+        summary_row(order, 'Total taxable produce (tax inclusive)',  total_taxable_products(order),   invoice_number, 'GST on Income',          opts),
+        summary_row(order, 'Total untaxable fees (no tax)',          total_untaxable_fees(order),     invoice_number, 'GST Free Income',        opts),
+        summary_row(order, 'Total taxable fees (tax inclusive)',     total_taxable_fees(order),       invoice_number, 'GST on Income',          opts),
+        summary_row(order, 'Delivery Shipping Cost (tax inclusive)', total_shipping(order),           invoice_number, tax_on_shipping_s(order), opts)
       ]
     end
 
@@ -56,6 +56,11 @@ module OpenFoodNetwork
       order.adjustments.shipping.sum &:amount
     end
 
+    def tax_on_shipping_s(order)
+      tax_on_shipping = order.adjustments.shipping.sum(&:included_tax) > 0
+      tax_on_shipping ? 'GST on Income' : 'GST Free Income'
+    end
+
     def invoice_number_for(order, i)
       @opts[:initial_invoice_number] ? @opts[:initial_invoice_number].to_i+i : order.number
     end
diff --git a/spec/features/admin/reports_spec.rb b/spec/features/admin/reports_spec.rb
index 2de44d175d..86cf803fe5 100644
--- a/spec/features/admin/reports_spec.rb
+++ b/spec/features/admin/reports_spec.rb
@@ -319,7 +319,7 @@ feature %q{
     let!(:line_item1) { create(:line_item, variant: product1.master, price: 12.54, quantity: 1, order: order1) }
     let!(:line_item2) { create(:line_item, variant: product2.master, price: 500.15, quantity: 3, order: order1) }
 
-    let!(:adj_shipping) { create(:adjustment, adjustable: order1, label: "Shipping", originator: shipping_method, amount: 100.55) }
+    let!(:adj_shipping) { create(:adjustment, adjustable: order1, label: "Shipping", originator: shipping_method, amount: 100.55, included_tax: 10.06) }
     let!(:adj_fee1) { create(:adjustment, adjustable: order1, originator: enterprise_fee1, label: "Enterprise fee untaxed", amount: 10, included_tax: 0) }
     let!(:adj_fee2) { create(:adjustment, adjustable: order1, originator: enterprise_fee2, label: "Enterprise fee taxed", amount: 20, included_tax: 2) }
 
@@ -347,7 +347,7 @@ feature %q{
         xero_invoice_row('Total taxable produce (tax inclusive)',  1500.45, 'GST on Income'),
         xero_invoice_row('Total untaxable fees (no tax)',          10.0, 'GST Free Income'),
         xero_invoice_row('Total taxable fees (tax inclusive)',     20.0, 'GST on Income'),
-        xero_invoice_row('Delivery Shipping Cost (tax inclusive)', 100.55, 'Tax or No Tax - depending on enterprise setting')
+        xero_invoice_row('Delivery Shipping Cost (tax inclusive)', 100.55, 'GST on Income')
       ]
     end
 
@@ -366,11 +366,8 @@ feature %q{
         xero_invoice_row('Total taxable produce (tax inclusive)',  1500.45, 'GST on Income',   opts),
         xero_invoice_row('Total untaxable fees (no tax)',          10.0, 'GST Free Income', opts),
         xero_invoice_row('Total taxable fees (tax inclusive)',     20.0, 'GST on Income',   opts),
-        xero_invoice_row('Delivery Shipping Cost (tax inclusive)', 100.55, 'Tax or No Tax - depending on enterprise setting', opts)
+        xero_invoice_row('Delivery Shipping Cost (tax inclusive)', 100.55, 'GST on Income', opts)
       ]
-
-      # TODO:
-      # - Tax specification for shipping
     end