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.

1. Go to WooCommerce > Settings > Tax.
2. Navigate to the Tax options tab.
3. Set the following fields and save the changes:

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.

1. Go to WooCommerce > Settings > Tax.
2. 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.
3. Make sure all other rows are empty.
4. 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.