Why aren't product page and cart prices including VAT in my UK store?

Technical Q&A
1

Hi,

I have enabled dynamic tax inclusive pricing on our store but it always shows prices excluding VAT.

I am based in the UK where prices typically show inclusive of VAT +20%.

But even when logged in to an account (with a default shipping address in the UK) the store shows prices excluding VAT.

  • We are using Shopify Payments

  • We have taxes and duties set up for the UK

  • Geolocation app is installed

  • Have checked Include or exclude tax based on your customer’s country in settings

Taxes are added correctly at checkout but increase abandoned checkouts due to tax shock. Why are prices on product pages and cart not including VAT?

Regards,

Matt

2 Likes
2

Hi there !

Did you get this working ? I’m suffering with the same issue.

3

Hello. Has there been any progress here? I have the same issue.

4

Hi Sophie,

From my experience even though the shopify supports dynamic taxes on product prices (they have described on their documentation), the platform doesn’t support work as expected. I’ve been managed a store that sells for several markets and the primary market is PT that has product override taxes (6% for a product category A, 13% for B, etc). The platform is assuming that all the prices has the main tax (23%). So, for the primary market the prices are wrongly displayed, product override tax doesn’t work with dynamic taxes on prices feature. For the other markets, the behaviour it’s okay (because the platform is correctly calculating the tax based on the primary market price + main tax).

If you don’t work with product override taxes, you should be okay with that. You need to activate the shopify payments.

5

Hi RococoDigital
Unfortunately, it won’t work like that.
We have 3 tickets open for this problem and the support team has been “prioritizing and solving it” for several months, but there will be no results.
That is, your local customers will see the product’s price without tax and will only find out the final price at the checkout stage, although customers from other countries will see the final cost they will pay on the product page.

As an option, you can try:

  1. Settings->Taxes and duties->Global Settings-> Include sales tax in product price and shipping rate.
  2. Then for each market, adjust the product price to the tax level. For example, if for the Spanish market: (Settings->Markets->Spain->Products and pricing->Price adjustment-Price increase +21%). And so on for all markets with the correct tax amount for each country.

It almost worked for us until we got to Finland, where VAT is 25.5%, and Shopify does not allow adding non-whole % adjustments! That is, they fixed one market, but broke another)))

6

Hi @ricardoramalho is there a workaround / solution for product override taxes?

We have to use discounted tax rates for some products in parallel with the normal tax rate and am struggling to make it work with the dynamic taxes.

7

@pavelllink did you find any workaround or fix for this problem?

8

Hi @Jakobaaa ,

I developed the current solution in the current store theme, showing dynamically the product price for the primary market based on some tags.

As far as I know there is no a proper solution from shopify team yet for the the whole scenario I described above.

Cheers