I am running a WPML setup with two different domains and currencies.
1) .de domain with EUR as currency
2) .com domain with USD as currency
I would like to hide/display VAT tax based on language/domain. Specifically, in the german version I would like to display prices including 19% VAT in EUR whilst in the US version I would like to display prices excluding VAT and in USD.
I understand that there are settings to choose whether prices are displayed with or without tax based on customer location/shipping address/store location, but this doesn't seem to affect the displayed price in the store.
I set the default customer location to "no location", but it still assumes for the translated .com domain that the location is germany and applies 19% VAT on displayed prices.
Maybe the behaviour I am looking for is simply not possible, becasue taxes are calculated on shipping addresses rather than language settings. Having said that, I can't be the only one that would like to change the default behaviour of a language/domain with regards to tax being displayed.
1. Prices inclusive of tax vs. prices exclusive of tax
Prices inclusive: You enter a product price of £9.99 that includes £1.67 tax. A customer in the UK would pay £9.99 as defined, and a customer in the US would only pay £8.32.
Prices exclusive: UK shop would enter 8.32 at the product price. A tax of 20% would be applied on top of this during checkout making the amount payable £9.99.
Testing your site I see that the price on product page is exclusive of tax and as soon as I enter a German address in the checkout process, VAT (19%) is added. On the English version the price remains the same as VAT is 0%.
If you choose inclusive of tax. In that case, the German displayed price on product pages will be the same during the entire checkout process. Taking the example from their documentation. A German customer will pay £9.99 including £1.67 tax and an US customer will pay less (£8.32).
2. Tax is based on customer shipping address, that's how taxes work. For example in the US you have a lot of Spanish speakers, so they might look at the Spanish version of the site but they are still based in the US. Same thing for Germany, you can have English speakers that live in Germany and the VAT needs to be applied.
3. There are few things that can improve that:
- Yes tax is based on customer shipping address, but I think that if in "WooCommerce > Settings > General" you set the "Default customer location" to use Geolocate (with MaxMind). WooCommerce will be able to determine the customer country before the checkout (Please note that the customer can still have a different shipping address than his current location).
- On their documentation there is a link to Github: hidden link
Using this filter, you can set the same price inclusive of tax for all countries and customers will pay exactly the same. The only difference is the taxes absorbed. Keeping the example, a German customer will pay £9.99 including £1.67 tax and an US customer will pay £9.99 including £0 tax.
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