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
- Go to your Swap Dashboard.
- Open a Pricing Zone.
- Under Tax Strategy, select VAT Inclusive.
- 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.