Tax override & Dynamics Tax

Shopify Discussion
1

Premise:

  • Our products have different VAT rates: 7% or 19%
  • Our customers expect to see gross prices including tax in the storefront
  • we upload net prices (no tax included) to shopify backend

Where we stand:

Problem:

  • prices are calculated and shown wrong in the storefront; the gross price shown is calculated based on the higher tax (19%), then the correct tax (7%) is retroactively calculated based on the incorrect gross price

What we want to achieve:

  • maintain net prices in our backend
  • gross prices (including tax) in storefront and checkout
  • correct tax rate for each product
  • correct gross price calculation based on: net price * tax rate product
2

This happens because Shopify’s dynamic tax-inclusive pricing applies only one default tax rate per market, even if product tax overrides exist. It shows gross prices using 19% first, then adjusts to 7% at checkout.

To fix it, you can:

  • Disable dynamic tax-inclusive pricing and upload gross prices manually, or

  • Use Shopify Functions or a custom storefront to display the correct tax-inclusive price per product.

Mixed VAT rates aren’t fully supported yet in dynamic tax-inclusive mode.

3

Shopify performs dynamic tax-inclusive pricing at the market level and not at the per-product rate which results in mixed VATs = mixed gross prices. To fix this, turn off dynamic tax-inclusive pricing and add custom code or use metafields for 7% goods. Show the adjusted gross prices with liquid formulas: net×1.07 or net×1.19 dynamically.