Working with tax-inclusive prices in WooCommerce
When you enter your product prices in WooCommerce including tax , the final price customers see can fluctuate significantly depending on their location.
Why does this variation occur? By default, WooCommerce is designed to perform reverse engineering: it removes the base tax of your store (the one you included in the price) and then adds the tax rate for the customer's country.
If a product costs €10 (including your store's 20% base tax):
- A customer in a country with a 0% tax might see a price of €8.33.
- A customer in a country with a 10% tax might see a price of €9.09.
This price fluctuation can confuse customers and add a layer of complexity to your business management.
To ensure your customers see a consistent price and allow the Quaderno plugin to correctly manage global tax calculation, follow these simple steps.
Step 1: WooCommerce Tax Options Configuration
This setting tells WooCommerce how to interpret the prices you have entered and how to display them to customers.
- Go to WooCommerce > Settings > Tax.
- Navigate to the Tax options tab.
- Set the following fields and save the changes:
| Field | Value |
| Prices entered with tax | Yes, I will enter prices inclusive of tax |
| Display prices in the shop | Including tax |
| Display prices during cart and checkout | Including tax |
Step 2: Set the Base Tax Rate
For WooCommerce to correctly calculate the net price (tax-exclusive) from the tax-inclusive price, it needs to know your store's tax rate.
This step is crucial, as Quaderno will use this base calculation to correctly apply international tax laws.
- Go to WooCommerce > Settings > Tax.
- Select the Standard rates tab and introduce only the standard tax rate for the country where your store is located. For example, if your store is in Spain, enter 21% IVA. If it's in the United Kingdom, enter 20% VAT.
- Make sure all other rows are empty.
- Click Save changes.
By following these steps, your store guarantees a consistent final price for all customers while the Quaderno plugin accurately manages the required tax calculation and documentation globally.