Setting Up VAT Display Options in TronShop

Value Added Tax (VAT) is a type of consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT is decided by the government as a percentage of the price of the goods or services provided.

When to Display Prices With VAT

Displaying prices with VAT is most common in retail environments targeted at consumers (B2C). It is generally considered best practice to show prices with VAT in countries where VAT applies because it provides transparency and helps consumers understand the total cost they will pay at the end of the shopping process.

When to Display Prices Without VAT

Prices without VAT are typically displayed in business-to-business (B2B) environments. Businesses that purchase goods for resale or as inputs for production can often reclaim VAT, so displaying prices without VAT helps them see the base cost. This setup is beneficial for professional purchasers who need to know the product cost before tax for accounting and tax preparation purposes.

TronShop VAT Display Options

TronShop provides flexible options for displaying product prices respecting the business model of your
e-store. You can choose from the following settings based on your customer base:

• Prices with VAT

Select this option if your e-store primarily serves end consumers. With this setting, only prices inclusive of VAT will be displayed, providing clarity on the final purchase price.

• Prices without VAT

This setting is ideal for stores that primarily deal with other businesses. Prices shown will exclude VAT, allowing other businesses to view the base cost of products.

• Prices with and without VAT

This setting allows both prices with VAT and prices without VAT to be shown simultaneously. This is particularly useful for stores serving a mixed customers of consumers and businesses. It offers complete transparency, showing both the base price and the total cost including VAT.

Setting Up VAT Display Options in TronShop

To configure the VAT display options in your TronShop admin portal and navigate to the "Settings" / "Environment" / "Pricing Options":

Under the "PRICE TYPE" option, choose one of the three options:

• Prices with VAT

• Prices without VAT

• Prices with and without VAT

Save your changes to update your e-store settings.

By setting up your preferred VAT display options, you can match the specific needs of your customer base, ensuring transparency and compliance with local tax laws.

This feature enhances the shopping experience by allowing customers to see pricing information in the format that is most relevant to them.

Price display VAT settings might affect "Google Merchant" indexing

Please note that this setting might affect indexing for Google Merchant when Google Merchant requires e-shop providers to submit product feeds that include their price with VAT.

For e-shops operating in regions where VAT applies, such as the European Union, Google Merchant mandates that the submitted product feeds accurately reflect prices inclusive of VAT.

This requirement ensures that the prices displayed to consumers are transparent and comply with local regulations. Incorrectly submitted prices, whether omitting VAT when it should be included or vice versa, can lead to issues with how products are indexed and presented on Google Merchant, potentially affecting visibility and sales. Therefore, it is crucial to configure the VAT settings correctly in your e-shop to align with these requirements.