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Tax Inclusive Pricing Overview

In this document, you’ll learn how to change tax-inclusive settings, and how prices are applied based on whether tax-inclusive pricing is enabled or not.

Note

Tax-inclusive pricing is currently in beta mode and need to be manually enabled in your store using feature flags. If you’re unsure how that works, please contact your technical team.

Overview​

If you sell in multiple countries or regions that share the same currency, you might run into an issue when specifying prices without taxes, as countries that have the same currency might have different tax rates.

In that case, if you want to show the same price for a currency regardless of what region the customer is browsing from, you’d have to manually run calculations to specify the correct price for all regions.

Tax-inclusive pricing saves you the manual work. When tax-inclusive pricing is enabled, you can just enter the price you want the customer to see on the storefront. Medusa then takes care of calculating the tax amount applied to the item based on the tax rate.

Tax-inclusive pricing can be managed for the following domains:

  • Regions
  • Currencies
  • Price Lists
  • Shipping Options

The settings for these domains can affect other domains associated with them.

Info

Tax-Inclusive pricing is disabled by default for all these domains.

Tax-Inclusive Pricing for Regions​

When tax-inclusive pricing is enabled for a region, it is subsequently enabled for product prices, the tax calculation on the line items in a cart, and the cart’s subtotal calculations.

Change Tax-Inclusive Pricing for Existing Regions​

To change the tax-inclusive pricing setting for an existing region:

  1. Go to Settings → Regions.
  2. Select a region to edit.
  3. In the first section on the right, click on the three dotsthree dots icon.
  4. Click on Edit Region Details from the dropdown.
  5. In the window that opens, find the Tax Inclusive Prices field and enable or disable it.
  6. Click on the “Save and close” button.

Set Tax-Inclusive Pricing for New Regions​

To set the tax-inclusive pricing setting for a new region:

  1. Go to Settings → Regions.
  2. Click on the plusplus icon at the top right of the Regions section.
  3. In the form that opens and among other Region details, find the Tax Inclusive Prices field and enable or disable it.

Tax-Inclusive Pricing for Currencies​

When tax-inclusive pricing is enabled for a currency, it is subsequently enabled for:

  • Prices of product variants in this currency.
  • Tax calculation on the line items or products in a cart using this currency.
  • Prices in this currency of product variants in a price list.

Change Tax-Inclusive Pricing for Currencies​

To change the tax-inclusive pricing setting for a currency:

  1. Go to Settings → Currencies.
  2. Under Store Currencies, find the currency you’re making the change to.
  3. On the right of the currency, enable or disable tax-inclusive pricing.

Tax-Inclusive Pricing for Price Lists​

When tax-inclusive pricing is enabled for a price list, it is subsequently enabled for all product variants in that price list.

Info

If tax-inclusive pricing is not enabled for a price list, but a price for a product variant in the price list uses a currency that has tax-inclusive pricing enabled, then tax-inclusive pricing is subsequently enabled on that price.

Change Tax-Inclusive Pricing for Existing Price Lists​

To change the tax-inclusive pricing setting for an existing price list:

  1. Go to Pricing
  2. Click on the price list you want to make the change to.
  3. Click on the three dotsthree dots icon at the top right of the first section.
  4. Choose “Edit price list details” from the dropdown.
  5. In the new form that opens, expand the General collapsible and find the “Tax inclusive prices” field and enable or disable it.
  6. Click on the “Save and Close” button.

Set Tax-Inclusive Pricing for New Price Lists​

To set the tax-inclusive pricing setting for a new price list:

  1. Go to Pricing.
  2. Click on the “Add price list” button at the top right.
  3. In the new form that opens, expand the General collapsible.
  4. Find the “Tax inclusive prices” field and enable or disable it.

Tax-Inclusive Pricing for Shipping Options​

When tax-inclusivity is enabled for a shipping option, it is subsequently enabled for the shipping method a customer uses on checkout and for the cart’s shipping calculations.

Tax-inclusive pricing is enabled or disabled on creation based on whether the Region it is in has the tax-inclusive pricing enabled or not.

Tax-Inclusive Pricing for Products​

Tax-inclusivity for products’ pricing is affected by the tax-inclusive options of currencies, regions, or price lists.

When specifying the price of a product for a currency or a region, the tax-inclusivetax-inclusive icon will be greyed out if it’s disabled for that currency/region. If it’s enabled, the icon will be colored.

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