Include or exclude tax from product prices in Shopify

If you’re launching a Shopify store, it’s important to decide whether to include or exclude taxes in your product prices. This quick guide will explain the difference between these two options, help you choose one, and show you how to set it up correctly.
Check out the article for a written version of this guide:
go.sufio.com/include-exclude-tax
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Here's what we'll cover in this video:
0:00 - Introduction
0:33 - The difference including/excluding tax
1:14 - Exclude tax
2:30 - Include tax
3:50 - Include or exclude tax
5:50 - Setting up product prices

[@shayhamilton4086]

Great advice thank you

[@danieledepaolis5259]

Hi Jimmy, here is my situation: I have EU shop and I sell to both final customers and businesses. Customers can only by individual prodcuts. Business can only buy certain products like "boxes of products". Also, these boxes can only be seen by businesses that registered as wholesaler and their profile has been approved. The problem is the following: I want the SKUs that are meant for final customers to be Tax included. But the SKUs (boxes) that are meant for businesses to be Vat exc. and only added at the checkout (if they are from the country where my shop is, or the European Union but don't have a registered VAT). You mentioned the hybrid option where according to the market we can decide if charging the vat or giving it included, and say this is a good option for business, but not really, since that feature only detects the market, and the client type. Do you know if there is an option for that? Thank you in advance.

[@danieledepaolis5259]

thanks for the feedback! :)

[@Sufio]

Hey @danieledepaolis5259, thanks for detailing your situation. Unfortunately, Shopify doesn't directly support such specific VAT setups (differentiating by customer type and product SKUs). However, a third-party app from the Shopify App Store might offer the solution you need. I recommend exploring there or consulting on of our Shopify Partners (sufio.com/partners/shopify/) for tailored advice. Hope this helps and wish you all the best with your ecommerce journey!

[@namepumpp6248]

with this configuration it will charge VAT to all EU customers or only to local customers in your case only customers from France

[@Sufio]

Hey! Thanks for your comment. The configuration we discussed in our video doesn't directly determine whether VAT is charged to your EU/French customers. Instead, the application of VAT depends on your store's tax collection settings in Shopify.
In Shopify, tax collection can be configured at a regional level. Therefore, if your store is set up to collect taxes and you sell to customers in different EU countries, Shopify will automatically calculate and apply the appropriate VAT rate based on your VAT registration scheme your business has applied for - either OSS or micro-business. This applies whether you're based in France or any other EU country, as this approach aligns with the EU's framework (the EU is considered a single economic zone for VAT purposes). To learn more take a look at our EU VAT guide: czcams.com/video/VOXDFUk2xvY/video.html

[@lukavidojevic3409]

Hi i am from Serbia and i am planning droppshiping products from China to Usa,Canada,Uk,Europe and Austrelia. So what taxes do i need to pay. Do i need to pay to Usa and all of those countryes anything more than tax my customers pay to me. And how do i pay to Usa and those countryes tax. And do you know maybe in Serbia what taxes i need to pay. Thankss

[@Sufio]

Hey @lukavidojevic3409! Given the complexity of taxation rules across different countries, it's a good idea to consult a tax expert who is experienced in international sales and EU VAT regulations. This can help ensure you comply with all applicable laws and understand your tax obligations in each country. We wish you all the best on your dropshipping venture!

[@sachinjain3161]

India

[@Sufio]

Hello! While we haven’t covered this topic in a video yet, we do have a useful article about Indian taxes on our Sufio website. You can find it here: sufio.com/articles/shopify/taxes/gst-india-shopify/. Hope that helps!