Foundation · 2 min
What you need to know
What is tax-inclusive pricing?
Tax-inclusive pricing shows a price that already contains the included tax amount. The receipt can still disclose the tax portion.
What is tax-exclusive pricing?
Tax-exclusive pricing shows the pre-tax amount and adds tax separately. Customers must see the final payable total before placing the order.
Tax-inclusive vs tax-exclusive pricing: what’s the difference?
Inclusive display builds tax into the shown price; exclusive display adds it later as a separate amount. The lawful or expected approach can differ by market and customer type.
Should displayed product prices include tax?
Follow the target market’s rules and customer expectations, using the actual location and transaction context available. Do not advertise a misleading low price when mandatory tax is predictably payable.
Can tax-display rules vary by country?
Yes. Consumer-price display, B2B conventions and tax regimes vary, so the same product may need different presentation while preserving one accurate calculation record.
How should tax appear in cart and checkout?
Show whether tax is included, the tax amount or breakdown when required, and the final total before payment. Recalculate transparently when address, customer status or cart contents change.
How should tax appear after refunds?
Refund the tax associated with the refunded taxable amount under the applicable transaction rules, and record adjustments against the original tax lines rather than recalculating history with today’s settings.
A quick store check
Test inclusive and exclusive displays through discount, shipping, partial refund, and final receipt.
Foundation · 2 min
Frequently asked questions
Can checkout add tax without warning?
The payable total and tax treatment should be clear before the order is placed.
Does inclusive pricing remove the need for a tax line?
Not necessarily; invoices and receipts may still need to disclose the included amount.