WooCommerce and EAS EU VAT compliance systems support both inclusive and exclusive merchandise pricing. The choice of using inclusive or exclusive models depends on setting of tax options by the shop administrator. To some extent the choice also depends on the country of the shop registration and the main market for which the shop operates.
In some cases to ensure proper operation of the native tax engine along with the EAS tax engine the pricing model for the main market may be set up as inclusive while sales to EU will be considered as exclusive .This is the case for UK based shops. Please, refer to section "Typical installation for UK (IOSS)" for detailed setup rules. In this setting VAT will be added to the base UK price discounted for the UK VAT for EU sales while sales to UK and display prices for UK will be inclusive. This situation is demonstrated in the following example:
UK sale (inclusive 20 VAT)
50 GBP (41.67 merchandize plus 8.33 VAT)
Sale to Finland (Exclusive 24 VAT)
51,67 GBP (41.76 merchandize plus 10 VAT)
Such setting may require additional adjustment on the EAS side, please confer to EAS support for help and navigation.
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