5 Common VAT Display Mistakes in E-Commerce (and How to Avoid Them)

• By Daniyal Abdullah
• 17-11-2025
• E-commerce

For e-commerce stores, VAT management can be the difference between smooth sales and frustrated customers. VAT (Value Added Tax) isn’t just about compliance — it’s about trust, transparency, and user experience.

Customers complete a purchase with little hesitation when the total is predictable and known before checkout. However, tax is never something a buyer expects to see added at checkout. This negative experience can result in cart abandonment and an unfavorable perception regarding your brand.

For Shopify merchants, VAT can be particularly confusing. Each region has its own tax rules, and the wrong display format can create compliance issues or alienate customers. That’s why using the right Shopify VAT app, VAT switcher, or VAT pricing converter is essential for modern online stores.

In this article, we are going to discuss 5 VAT Display Errors That Cost Online Sellers Conversions and how to avoid them with Vennzo VAT Pricing Converter & other VAT tools.

1. Showing Only VAT-Exclusive Prices

Why It’s a Problem

There are businesses that operate across several regions, and many of them only display prices that do not include VAT. While this may be reasonable when it comes to B2B markets, B2C terms are commonly recognized as illegal. This is especially the case within the UK and the EU.

VAT-inclusive prices are legally expected throughout the EU and UK. Misleading and incomplete final surcharges can misrepresent the value of the order and prompt the customer to abandon the order altogether.

This can also be true when VAT-inclusive prices are added to the final cost of goods and your prices are compared to the competition. Lost customers can be the result of simple display issues, leading to their confidence in your business being lost, as well.

Baymard Institute’s research explicates that unexpected added costs, including tax, are a primary driver of cart abandonment. Overall, close to 48% of customers abandon their order due to a higher-than-expected final price.

How to Avoid It

Using software that automatically adjusts the display of prices to show VAT-inclusive and VAT-exclusive prices would be the best way to alleviate this issue.
For example, Vennzo VAT Pricing Converter shows VAT-included amounts on Shopify, where buyers will see the total for the checkout at all times. It does this for every region, and does not need to be set to do this.

You can state, “€29.99 (incl. VAT)” instead of simply “€29.99.” This way, they will not have to guess. It will allow prices to be visible and, at this point, there is consistency and the guesswork.

Extra Tip:

When you run promotions, do not forget to display VAT on the applicable prices. It gives the chance to see consistency on VAT display under the set rules of the system. The Shopify VAT switcher lets you place testing borders to see how prices will be displayed to buyers in other countries.

Example in Action:

Imagine a customer browsing your store from France. Consumers expect the total price to be €49.99 when they see a product listed at that price. But when they go to checkout, the VAT adds €10 and they’re nearly €60. They might feel cheated because of that small surprise — no matter how accurate it is. Making the inclusive price visible prevents this confusion.

2. Mixing VAT Settings Across Pages

Why It Creates Confusion

Another frequent problem is inconsistent VAT display. An example is when your product pages show prices inclusive of VAT, but your cart or checkout shows exclusive amounts.

This is confusing, and is illegal in most countries. When customers are checking out and see mismatched amounts, they become uncertain about what they are being charged. Shoppers are used to quick and clear transactions, so any hesitation on your part risks losing a sale.

If your shop has multiple templates, currencies or region-based tax rules, then Shopify’s default VAT settings can create confusion. It doesn’t take much misconfiguration to create a big display mismatch.

How to Avoid It

If you want to automatically apply tax on every store page, then a VAT app will work.

With Vennzo VAT Pricing Converter, prices are calculated inclusive and exclusive of VAT on product listing pages, in the cart and on the checkout summary. This ensures compliance with EU and UK law, while eliminating confusion about pricing.

Testing your store should be routine. After you update your Shopify theme, do a few test purchases to see if the VAT display is consistent. This step is often skipped, usually after a redesign or seasonal campaign. And that’s where mistakes are most likely to occur.

Pro Tip:

Perform a full store walkthrough at least once a month. Check the homepage, product pages, cart, and checkout flow to make sure VAT remains clear and consistent everywhere. Consider using a VAT switcher app like Vennzo to preview how your prices appear to international customers before publishing updates.

Why This Matters More Than You Think:

Untrustworthy pricing irritates customers. It leaves a customer suspicious of your pricing. A customer may think your business lacks transparency, your service is of poor quality, and your business is not fair. Being consistent visually and numerically across your entire store is one of the easiest ways to reinforce brand consistency.

3. Ignoring Dual Pricing Needs for B2B and B2C Customers

Why Dual Pricing Matters

Many e-commerce sites today cater to both B2B and B2C customers. Though these buyer types have different expectations in terms of how VAT is displayed.

B2C customers expect to see a final price, which includes VAT, not just a presentation of the price. B2B buyers, however, prefer VAT-exclusive prices since they can recuperate tax through their business.

Each section can be confusing and give an unprofessional appearance if you only show one format. A personal buyer may think you are hiding charges, while a business buyer may find it frustrating to assess costs when tax is not displayed.

How to Avoid It

A powerful Shopify VAT app can help you cater to both segments without manual setup.

Vennzo VAT Pricing Converter lets you show both prices at once — for example:

• Price excl. VAT: €25.00
• Price incl. VAT: €30.00

This setup works beautifully for hybrid stores serving both audiences. It keeps your pricing transparent and lets each buyer instantly understand what applies to them.

Additional Insight:

Labeling should be clear and unambiguous. For instance, avoid “ex VAT” or “+VAT” especially if your audience is international. Obscure terms may erode global trust.

You can also automate VAT switching per customer type. For example, logged-in B2B users can see exclusive prices while guest users or B2C customers see all totals VAT-included. Vennzo supports this type of automation seamlessly.

Real-World Example:

A wholesale clothing retailer gets a significant reduction in support tickets by implementing dual pricing. Customers no longer have to email to confirm if VAT is included because both prices are displayed. This results in fewer operational headaches as well.

4. Not Updating Regional VAT Rates

Why It’s Risky

Different nations have different VAT rates and they change from time to time." Your pricing could become out-of-date overnight if your system doesn’t update.

Shopify sellers who work with international customers but manage tax rules manually make this mistake often. A minuscule error such as 19?ing charged instead of 20?n obstruct your compliance, refund amount, and financial report accuracy.

When rates are out of sync with current market conditions, it may lead to regulatory fines and customer disputes. It's not only about the amount, it's about staying professional.

How to Avoid It

Put your VAT rate updates on autopilot with a VAT calculator from Shopify or a reliable VAT Pricing Converter app.

Vennzo's VAT Application helps ensure that you always use the exact rate for the location of your buyer. This feature automatically assigns the corresponding VAT percentage based on your customer’s destination.

It saves time for the client and ensures compliance with the laws. As per the law, the tax must be calculated and disclosed correctly.

Bonus Tip:

Review your tax settings quarterly. It is prudent to confirm rates manually when changes are made during a peak season or entering a new country, even with automation. If you add digital goods or cross-border sales, be sure your VAT rules adapt.

Did You Know?

The EU updates VAT rules frequently, especially for digital products. A misstep can lead to incorrect filings or penalties. Using a system that keeps up with regulatory changes ensures peace of mind and smooth scaling.

5. Hiding VAT in Checkout or Confirmation Emails

Why It Damages Trust

When prices on product pages are consistent, trust is built, but trust is lost when the checkout and confirmation emails drop VAT.

Many merchants approach the checkout process in an overly simplistic fashion, but consumers don’t. When VAT is inconsistently displayed, people will question your business’s pricing integrity and may even assume a VAT charge is a hidden fee.

A seamless experience is what shoppers expect, so if the experience is not consistent and some message is incomplete, the likelihood of a repeat visit diminishes.

How to Avoid It

Always make sure VAT is displayed in all touchpoints, including:

• Product pages
• Cart pages
• Checkout summary
• Confirmation emails and invoices

Using a reliable Shopify VAT Pricing Converter like Vennzo ensures consistency from start to finish. It syncs all data automatically, eliminating manual errors and maintaining transparency.

Pro Insight:

Empower your customer-facing staff to deal with VAT queries and breakdowns. When customers ask your staff about the tax breakdown, they should be able to explain how it’s calculated and will further solidify your business’s image.

Example Scenario:

Consider a customer receiving a confirmation email that states a lower subtotal than what was actually paid, leaving the customer confused due to missing VAT details. Impressions matter and inconsistencies, even if fixed, can penetrate your business’s credibility. Every touchpoint matters.

Bonus Mistake: Forgetting to Test After VAT Updates

Why Testing Is Essential

Merchants also forget that once VAT is set, it stays that way—forever. This isn't the case, however. Changes to Shopify themes, apps, or even currency settings can all trigger changes to how VAT is displayed.

Without any testing, small glitches will go untested and uncorrected. This can lead to inconsistent and incorrect prices for weeks, which will go undetected until customers complain or conversion rates drop.

How to Avoid It

Always perform a quick test purchase after each major store update. This will ensure all prices display correctly and the checkout summary matches, including both VAT exclusive and inclusive prices.

You can catch and fix issues early by using Vennzo’s VAT Pricing Converter, which allows you to preview changes before they go live and helps maintain the accuracy of your store across devices and regions.

Pro Tip:

Keep a simple testing checklist:

1. Add a product to cart.
2. Check for VAT display on all pages.
3. Review confirmation email.
4. Verify VAT breakdown in invoices.

Doing this monthly ensures your store stays compliant, transparent, and error-free.

The Psychology of VAT Display: Why Transparency Affects Conversions

How you show VAT affects both customers and compliance. Prices that are unclear or change often cause "cognitive friction." Customers think about it, take their time, and often decide not to buy.

On the other hand, showing VAT honestly makes customers more likely to buy. Customers see clear prices as fair, which builds trust without them even knowing it.

Design can play a vital role as well. Putting prices that include VAT next to the "Add to Cart" button and using bold text can help customers decide whether or not to buy. The Vennzo VAT Pricing Converter makes prices easier to read by changing the way they look based on where the customer is.

Customers can see up-to-date totals with a VAT switcher that shows live, region-based pricing. This is more than just smart compliance; it's also smart user experience design.

The Future of VAT Display in Global E-Commerce

Handling VAT will become more complicated due to sales crossing borders. The EU is creating new trade agreements and coming up with new rules for digital products and international VAT thresholds. Cross-border eCommerce stores will need to change how they operate.

Brands that handle VAT automatically are changing now and in the future. These businesses don't think of VAT as just a hassle to follow; they see it as a chance to make things better for their customers.

Clarity is even more important now that mobile commerce is growing so quickly. Most people now shop and pay from their phones, where small screens make it even more important to be clear. A clear, VAT-inclusive display on mobile can help keep people from leaving the checkout page.

That's why we made Vennzo's VAT Pricing Converter so that every price can be read and is correct on all devices and in all currencies.

We think that future AI VAT switchers will be able to find the right region, business type, and tax rules to make it easier for businesses to deal with VAT.

Shopify merchants who adopt this kind of technology early will be ahead of their competitors who still have to set up taxes by hand.

Action Plan: How to Get VAT Display Right on Shopify

Here’s a simple step-by-step checklist you can use today:

1. Install a Shopify VAT Pricing Converter like Vennzo.
2. Enable VAT-inclusive display for B2C buyers.
3. Activate dual pricing for B2B customers where applicable.
4. Sync VAT settings across product, cart, and checkout pages.
5. Verify VAT in confirmation emails and invoices.
6. Test monthly to catch display or theme errors early.
7. Keep rates updated automatically through Vennzo’s built-in calculator.

This action plan ensures your store remains compliant, user-friendly, and trusted in every region you sell to—thanks to Vennzo’s dual VAT display feature that makes tax presentation effortless for both local and international customers.

Final Thoughts: Simplicity Over Stress

Hassle-free VAT management is possible. Most challenges from hidden taxes and inconsistent displays to mismatched rates are due to improper setups.
A VAT application like Vennzo will help automate everything and maintain your pricing clear and compliant at all times.

Remember:

• Always display VAT-inclusive prices for consumers.
• Keep consistency across every page.
• Update rates regularly.
• Test your checkout flow frequently.

Being open and honest about tax matters helps build customer trust — and that trust turns into increased sales and customer loyalty.

Make your Shopify store a paragon of VAT clarity by using Vennzo’s VAT Pricing Converter to streamline compliance and alleviate misunderstandings.

Clarity sells more than anything else — and when it comes to international eCommerce, clarity is your most valuable competitive differentiator.