A UK-based Shopify store owner wants to display prices excluding VAT on product pages and add 20% VAT at checkout with a clear breakdown. Despite disabling “Include tax in prices” and enabling VAT collection with a registered VAT number, checkout still shows “Taxes included” without adding VAT—suggesting Shopify treats prices as VAT-inclusive.
Key troubleshooting point: One responder highlights that Shopify only adds VAT and doesn’t deduct it. Product prices must be entered as the net amount (excluding VAT). For example, a £12 final price should be listed as £10.00 in Shopify.
Proposed solution: A third-party app called Taxify was recommended, which displays ex-VAT prices on product pages while Shopify handles VAT addition at checkout. The app also offers VAT ID validation for B2B exemptions.
The issue remains unresolved in the thread, with at least one other user experiencing the same problem.
Summarized with AI on October 25.
AI used: claude-sonnet-4-5-20250929.
I’m based in the UK and trying to configure my Shopify store to:
Display prices excluding VAT on all product pages
Add 20% VAT at checkout
Show a clear VAT breakdown on the checkout and invoice
Ideally remove the “Taxes included” message if it’s not accurate
Here’s what I’ve done so far:
Disabled “Include tax in prices” under Taxes and Duties → Global
Enabled “Charge tax on this product” for each product
Set up VAT collection for the United Kingdom and added my VAT number
Problem:
At checkout, Shopify still shows “Taxes included”, and no VAT is added. It looks like it assumes the product price already includes VAT, even though it shouldn’t.
It allows you to show the prices excluding VAT on all product pages. 20% VAT will automatically be added by Shopify based on your tax settings. Shopify will also show a tax breakdown like €9,99 tax included.
We also have the option to validate VAT ID’s and automatically exempt customers from paying VAT if they provide a valid VAT ID.
Happy to personally assist getting everything set up. If you install the app, just click the chat bubble to reach out.
Apologies, may seem like a silly question but have you listed all your prices NET of VAT (basic price exclusive of VAT)? So if an item is £12 with VAT, it should be listed on Shopify as £10.00.
It may seem obvious but Shopify only ADDS VAT, it does not deduct it, so your list price has to be excluding VAT.