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VAT-Inclusive Pricing

G
Written by Guido Kaspers
Updated over a week ago

VAT-Inclusive Pricing is a Tax Strategy that lets you build VAT directly into your product prices. This means the price your customer sees is the final product price.


Why use VAT-Inclusive Pricing?

  • Clearer pricing: Customers see the final price upfront.

  • Better experience: No extra charges for VAT added at checkout.

  • Higher conversion: Fewer surprises means fewer abandoned carts.

  • Compliance: Aligns with regional expectations, especially in Europe.


How It Works

When you enable VAT-Inclusive Pricing for a country:

  • Swap calculates that country’s VAT rate.

  • That VAT is added to the product price shown on your storefront.

  • The VAT amount is not added again at checkout—it’s already included.

Example

Let’s say:

  • Your base price is $100

  • A 10% price increase (via coefficient) is applied → $110

  • VAT rate is 20% → final product price = $132


What About Shipping VAT?

VAT-Inclusive Pricing only affects product prices.

VAT on shipping is still charged at checkout.

Note: The VAT breakdown line at checkout will show 0. Any remaining VAT (like shipping VAT) is added under a different line in the tax breakdown.


Using Price Coefficients

If you’re using a price coefficient and VAT-Inclusive Pricing, the VAT is added after the coefficient.


Tax & Duties Buffers

Tax and duties buffers apply only to shipping and duties, not product prices.

⚠ We don’t recommend using buffers with VAT-Inclusive Pricing.


Swap’s Guarantee

If an incorrect VAT rate is applied for a country, Swap will cover the difference. You’ll only be billed for the VAT amount shown at checkout.


Supported Countries

Swap Global supports VAT-Inclusive Pricing for customers in the following countries:

⚠️ This list is subject to change.

Country

VAT Percentage

Afghanistan

10%

Albania

20%

Algeria

19%

Andorra

4.5%

Angola

14%

Anguilla

13%

Argentina

21%

Aruba

4%

Austria

20%

Azerbaijan

18%

Bahamas

12%

Bahrain

5%

Bangladesh

15%

Barbados

17.5%

Belarus

20%

Belgium

21%

Bermuda

0%

Bolivia

14.94%

Bosnia and Herzegovina

17%

Brazil

17%

Bulgaria

20%

Cameroon

19.25%

Cape Verde

15%

Chile

19%

China

13%

Colombia

19%

Cook Islands

15%

Costa Rica

13%

Croatia

25%

Curacao (Verde)

6%

Cyprus

19%

Czech Republic

21%

Denmark

25%

Djibouti

10%

Dominica

15%

Dominican Republic

18%

Ecuador

12%

Egypt

14%

Estonia

22%

Ethiopia

15%

Fiji

9%

Finland

24%

France

20%

Germany

19%

Ghana

15%

Gibraltar

0%

Greece

24%

Guam

2%

Guinea

0%

Guyana

14%

Honduras

15%

Hungary

27%

Iceland

24%

Indonesia

11%

Iran

9%

Ireland

23%

Israel

17%

Italy

22%

Jersey

5%

Jordan

16%

Kazakhstan

12%

Kenya

16%

Kosovo

18%

Kuwait

5%

Kyrgyzstan

12%

Latvia

21%

Lebanon

11%

Lithuania

21%

Luxembourg

17%

Macedonia

18%

Madagascar

20%

Malawi

16.5%

Malta

18%

Mauritius

15%

Mexico

16%

Moldova

20%

Monaco

20%

Montenegro

21%

Morocco

20%

Namibia

15%

Nepal

13%

Netherlands

21%

Nigeria

7.5%

Norway

25%

Oman

5%

Panama

7%

Paraguay

10%

Peru

18%

Philippines

12%

Poland

23%

Portugal

23%

Puerto Rico

11.5%

Qatar

5%

Romania

19%

Russian Federation

20%

Sao Tome and Principe

0%

Saudi Arabia

15%

Serbia

20%

Seychelles

15%

Slovakia

20%

Slovenia

22%

South Africa

15%

South Korea

10%

South Sudan

10%

Spain

21%

Sri Lanka

12%

St Lucia

12.5%

Sweden

25%

Switzerland

8.1%

Taiwan

5%

Tanzania

18%

Thailand

10%

Togo

18%

Trinidad and Tobago

12.5%

Tunisia

19%

Turkey

20%

Uganda

18%

Ukraine

20%

United Arab Emirates

5%

United Kingdom

20%

Uruguay

22%

Uzbekistan

12%

Vanuatu

0%

Venezuela

16%

Vietnam

10%

Zambia

16%

Zimbabwe

15%


How to Enable It

  1. Go to your Swap Dashboard.

  2. Open a Pricing Zone.

  3. Under Tax Strategy, select VAT Inclusive.

  4. Save your changes.


Limitations

  • Available only for Shopify stores on the Advanced or Plus plan.

  • Each country in a VAT-inclusive zone uses one Shopify Market.

  • Maximum of 50 markets per store (Shopify limitation).


FAQ

Can I use VAT-Inclusive and TLC together?

No — these are separate strategies. If you want to include duties as well, use TLC-Inclusive Pricing.

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