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VAT inclusive Pricing Now Supported

Posted on September 23, 2008 by Sean Schofield

We just added support to the core Tax Calculation extension for displaying Product prices including VAT on all customer facing pages. This feature will enable stores based in the EU that are required to add VAT to products to display the final price to the customer.

When enabled the VAT amount will be calculated, added to the product’s price and displayed as: €19.99 (inc. VAT). The currency symbol and format used will continue to be the appropriate symbol used for your locale.

Previously VAT amounts were only added at the checkout phase, so for certain countries / products this could mean a 25% jump in the total order price, which would lead to high cart abandonment rates.

You can enable this by changing the :show_price_inc_vat preference value to true, to learn more see the wiki.