The check box "Include sales tax in product price and shipping rate" does not do anything

[ALMONDA]

Hi! I want my store to show tax (VAT) proportion in the invoice and at checkout, I have set up the VAT collection and I have entered all my prices already including VAT.  However, when I check the box "Include sales tax in product price and shipping rate" nothing changes and Shopify calculates additional VAT for products during check out. Can someone please help solve this? 

Thanks in advance.

K

[Promer-Aila · Accepted solution]

Hi @ALMONDA 

It seems like Shopify is still adding VAT on top of your prices instead of making them tax-inclusive. Follow these steps:

1. Check Your Tax Settings – Head to Settings > Taxes and Duties, select your region to "All prices include tax."
2. Ensure Product Prices Are Tax-Inclusive – Go to Settings > Markets and review your country's tax settings and ensure Shopify is not adding VAT on top of this.
3. Test with a clean Cart – Clear your cache or test in incognito mode to see if the issue still happens.
4. Manually Set Tax Rates – Manually set your product prices to include VAT, if needed, and disable tax calculation for such products.

Hope this helps 🙂

[ALMONDA]

Thank you! I managed to resolve the situation by going to Settings- Markets- Duties and Taxes (must be set for DYNAMIC). 

Best regards!