In some countries or regions, like Europe, customers expect to see product prices with the local tax included. But in other places like North America, they prefer to see prices without taxes on your online store and have them added during checkout. Follow our instructions below to display tax-inclusive product prices in specific markets, so as to facilitate your customers' buying process, enhance their trust in your store, and stimulate their purchasing desire.
Step 1: Update settings for target market
From your Shoplazza admin, go to Settings > Markets and find the target market. Click Manage and check "The product price already includes the sales tax". Then, click Save to enable the feature.
Note
When the product price includes tax: Tax = Tax rate*discounted product price / (1 + tax rate)
For example, let's say a product has an original price of $100, and that includes a 10% tax. If this product gets a 10% discount, the new price would be $90. To find out how much of this $90 is actually tax, you can use a special formula. The formula involves multiplying the new $90 price by the 10% tax rate, and then dividing by 1.1 (which is basically 1 plus the 10% tax rate written as a decimal). When you do this, you'll find that $8.18 of the $90 is tax.
Step 2: Enable the option to Include tax in your product price
From your Shoplazza admin, go to Products > All products. Find the corresponding product and click on the edit icon (pencil). Then, check "Charge tax on this Product" and click Save. The product details page will now show the price with tax included.
Step 3: Confirm tax display
After you complete the settings, your customer will see the tax included on the product details page and the checkout page.
Step 4: Verify Whether the Product Price Includes Tax
To check if a product's price is displayed with tax included, follow these steps: Navigate to Orders > Unfulfilled and select the certain order. The details of the product price will be displayed in the Total section.
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