Tax Inclusive Pricing and Customer Tax Exemption

Shopify Discussion

Topic summary

Issue: With tax-inclusive pricing enabled in a Shopify dev store, tax-exempt customers are not seeing prices adjust to remove tax at checkout; prices remain at the inclusive rate.

Context and settings:

  • Products set to “all prices include tax.”
  • “Charge tax on shipping rates” enabled.
  • Regular customers see a GST (Goods and Services Tax) breakdown marked as included (expected behavior).

Problem detail:

  • For customers marked tax-exempt, checkout shows no tax removal or price reduction; the inclusive price persists.
  • A screenshot was provided to illustrate the checkout behavior (image central to understanding the display outcome).

Key questions raised:

  • Is this behavior by design in Shopify or a configuration issue?
  • Should prices be maintained tax-exclusive instead and tax applied via Liquid (Shopify’s templating language) as a workaround?

Status:

  • No confirmed answer or resolution provided yet.
  • Action needed: guidance on whether Shopify supports automatic price adjustment for tax-exempt customers under tax-inclusive pricing, or recommended best practice/workaround.
Summarized with AI on March 1. AI used: gpt-5.
1

Hello, we have setup products to be price inclusive in our dev store.
We also checked this in tax settings:

  • all prices include tax

  • charge tax on shipping rates

Now for regular customers, we get this at checkout:

  • GST breakdown (included) – EXPECTED

For tax exempted customers, we get this at checkout:

  • No adjustment, the price remains at the inclusive rate

agmiguelcalo_0-1632453959819.png
agmiguelcalo_0-1632453959819.png1442×298 70.4 KB

2

Is this a shopify issue/by design or configuration issue?

Should we track tax exclusive pricing on our products instead, and apply the rate on liquid?