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Tax Strategies

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Written by Guido Kaspers
Updated over a week ago

Tax strategies let you decide how taxes and duties are shown and charged to your customers. They help create a more transparent checkout experience, reduce surprises, and make sure you’re aligned with local expectations.

This article explains each option briefly and links to detailed articles if you’d like to learn more.


Available Strategies

Checkout

Taxes and duties are calculated live at checkout and added to the shipping line.

This is the default setup. It keeps product prices unchanged and adds any applicable taxes during checkout.

VAT Inclusive

The VAT amount is added to your product price before it’s shown to the customer. This way, the price they see is the final price they’ll pay for the product.

  • Ideal for regions (like Europe) where customers expect VAT to be included.

  • Creates a smoother experience with fewer surprises.

  • VAT is still charged on shipping separately at checkout.

  • If something goes wrong with the VAT calculation, Swap covers the difference.

TLC Inclusive (Total Landed Cost)

All taxes, duties, and import fees are included in the product price. Customers only pay for shipping at checkout.

  • Makes international shopping feel like local shopping.

  • Eliminates surprise fees on delivery.

  • Even if an order falls below de-minimis thresholds, duties are still included.

  • Swap uses a single duty rate to keep things simple — and covers the cost if it ends up being off.

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