Why include VAT?

For EU B2C offers, displaying the total consumer price inclusive of VAT and all other applicable taxes is mandatory. Clear VAT-inclusive pricing also supports consumer trust and can reduce checkout abandonment by ensuring that customers see the price they are expected to pay from the outset.

Key benefits

• Supports compliance with EU consumer price-display requirements for B2C sales.
• Builds trust by avoiding unexpected tax additions at checkout.
• Reduces cart abandonment caused by a higher price appearing late in the purchase journey.
• Meets consumer expectations in Germany and other European markets, where advertised consumer prices are generally shown inclusive of VAT.
• Improves price transparency by showing the final product price upfront.

Prohibited for EU B2C sales: Displaying a net price and adding VAT at checkout

For EU B2C offers, you must not advertise a net price and add VAT only at checkout. The selling price displayed to the consumer must include VAT and other applicable taxes. Showing a lower net price first and increasing it at checkout may mislead consumers and create avoidable confusion or hesitation.

Example

For a customer in Germany (19% VAT):

• Net product price: €47.00.
• VAT at 19%: €8.93. Gross consumer price: €55.93.
• The customer must see the €55.93 gross product price before entering the checkout - not €47.00 first and a higher price only later.

Important

For EU B2C offers, you must display the gross product price, including VAT, wherever a selling price is shown. The product price displayed on the sales page must not be lower than the product price presented at checkout because VAT was added afterwards.

Mandatory for EU B2C sales: Displaying the gross price (VAT included)

Always display the total consumer price inclusive of VAT and all other applicable taxes. This supports compliance with EU consumer pricing requirements and provides customers with clear, transparent pricing.

Why this matters

Displaying the gross price allows buyers to understand immediately what they will pay for the product. Digistore24 can then calculate and allocate the applicable VAT amount in the background based on the buyer's location and the relevant tax treatment.

Example

For a customer in Germany (19% VAT):

• Displayed product price: €55.93 gross, including €8.93 VAT.
• At checkout, Digistore24 applies the relevant VAT treatment based on the buyer's country and the product configuration.
• The gross product price shown on the sales page must correspond to the gross product price presented at checkout. Any additional delivery or other charges must be disclosed clearly before the customer places the order.

Illustrative VAT rates when using one funnel across multiple markets

VAT rates can change and may differ according to product type. The examples below use the rates stated in this article and a net product amount of €47.00:

Margin adjustment

VAT rates vary by country. If you use one gross price across several markets, the vendor's net amount may vary depending on the VAT rate applied.

Recommendation

Set the gross price with the relevant target markets and VAT rates in mind. If maintaining a specific minimum net amount is important, base the gross price on the highest applicable VAT rate among the markets served by that funnel, or use market-specific pricing where available. This is commercial guidance rather than a legal requirement.

Results summary

• Customers see the product price they are expected to pay, supporting trust and reducing avoidable checkout drop-off.
• Vendors can plan pricing more accurately across countries with different VAT rates.

Setup in Digistore24

To enable VAT-inclusive pricing:

1. In the vendor view, go to My products → Product list.
2. Click the pencil icon for the relevant product.
3. Open the Payment plans tab.
4. In the All prices are ... field, select gross prices (VAT is included).
5. In Show VAT on order form, choose whether the applicable tax information should be displayed separately on the order form.
6. Click Save.
7. Repeat these steps for any other relevant products.

Important note

The information on this page is provided for general guidance only and may not reflect the most recent VAT rules, rates, or interpretations. VAT and consumer-pricing obligations can vary by country, product type, and transaction. Consult the relevant tax authority or a qualified tax or legal professional for advice specific to your circumstances. Digistore24 cannot accept responsibility for actions taken solely on the basis of this general information.

Need help?

Please contact our support team at helpdesk@digistore24.com