In a recent Business Bloomer Club discussion, a member encountered a perplexing tax display issue in their WooCommerce store. Despite setting up prices to include VAT and configuring WooCommerce’s tax display settings to always show VAT-inclusive prices, an unexpected amount was displayed on the product listing page.
Only in the cart or after selecting a shipping country did the correct price appear. This inconsistent behavior led to confusion, as it seemed WooCommerce was ignoring the store’s tax settings.
Here’s how we approached diagnosing and fixing this problem.
Solution: Adjusting Default Customer Location Settings
One critical setting that can impact tax calculations and display is the “Default Customer Location” option. If this is not set to “Shop Address,” WooCommerce may not apply the correct tax rate until the customer specifies their location.
Steps to Fix the VAT Display Issue
- Access WooCommerce Settings: Go to WooCommerce > Settings > General.
- Set Default Customer Location: Ensure that Default Customer Location is set to “Shop Address.” This tells WooCommerce to assume the store’s location as the customer’s location until further information (like shipping country) is provided.
- Check Tax Settings: In WooCommerce > Settings > Tax, make sure that:
- Prices are set to include tax in the backend.
- Display prices are configured to include VAT on all pages.
- Clear Cache: If using a caching plugin, clear the cache to make sure settings updates are reflected on the front end.
Why This Works
Setting “Default Customer Location” to “Shop Address” helps WooCommerce apply the correct tax rate immediately. Without it, WooCommerce might assume a default, untaxed price until the customer’s location is confirmed, leading to confusing or incorrect prices.
This simple configuration change can ensure that prices are displayed consistently with VAT, regardless of customer actions, providing a smoother experience for European customers and reducing potential misunderstandings at checkout.
