Tax override & Dynamics Tax

Shopify Discussion

Topic summary

A merchant is experiencing incorrect gross price calculations when combining Shopify’s dynamic tax-inclusive pricing with product-specific tax overrides. They upload net prices and sell products with two different VAT rates (7% and 19%), but the storefront displays gross prices calculated using the higher 19% rate, then retroactively applies the correct 7% tax at checkout.

Root Cause:
Shopify’s dynamic tax-inclusive pricing applies a single default tax rate per market and doesn’t support per-product VAT rates, even when tax overrides are configured.

Proposed Solutions:

  • Disable dynamic tax-inclusive pricing and manually upload gross prices
  • Use Shopify Functions or a custom storefront to calculate correct tax-inclusive prices per product
  • Implement custom code with Liquid formulas or metafields to dynamically display adjusted gross prices (net × 1.07 or net × 1.19) based on each product’s tax rate

Status: The issue remains unresolved as Shopify doesn’t fully support mixed VAT rates in dynamic tax-inclusive mode.

Summarized with AI on October 23. AI used: claude-sonnet-4-5-20250929.
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.