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How can I display tax-inclusive prices in Europe and tax-exclusive in the US?

How can I display tax-inclusive prices in Europe and tax-exclusive in the US?

CLewin
Visitor
1 0 0

I have a an app that handles pricing for different countries installed and my main market is Sweden, where tax always should be included. The name of the app is Pricing by country (by webrex). In settings I first had checked "all prices includes tax", but this makes US prices show with tax as well, and that's not right. So I changed the setting to "Include or exclude tax based on your customer's country" which made all product show without taxes, no matter if I visited from Sweden or the US. However, at checkout there was a line "Estimated taxes xxx" which was added on top of the price, both for Sweden and US.

 

How can I show prices including tax för Europe (including Sweden) and prices without tax for the US? I'm not collecting taxes from US in my settings.

Reply 1 (1)

Rostislav
Shopify Partner
198 12 32

CLewn,

 

the meaning of general button for taxes settings is often misunderstood. 

 "all prices includes tax" - is about whether your catalog prices include or exclude VAT , it is not about how they are displayed.

 "Include or exclude tax based on your customer's country"- actually allows for the taxes to be calulculated based on the destination country . there is specific logic for this. I presume that you collect taxes for EU , so if you set this one to on it will folow the logic ( see here  Dynamic tax-inclusive pricing · Shopify Help Center) to include the local VAT for sales to suppurted countries. 

 

So technically you have to have the following settings 

Rostislav_0-1662073945637.png

In my test store which is set with Finland being the home country, the item Cap de france is 30 EUR (including tax) :

Rostislav_1-1662074046425.png

 

 

so the sales will go as foolows :  

to France :

Rostislav_2-1662074119705.png

29.03 =30/1.24 (Finnish VAT taken out) *1.2  (French VAT added) 

 

to US :

Rostislav_3-1662074231123.png

24.19 =30/1.24 (Finnish VAT taken out) 

 

So it works.

 

MVH 🙂

 

 

www.easproject.com - the best EU and UK VAT complience solution 

 

 

 

www.easproject.com - the best EU and UK VAT compliance solution.