It aligns with customer expectations in many VAT-based countries.
NOIR & BLANCO COMMUNITY
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Tax-inclusive pricing is used to show customers the total price they will pay, including tax, rather than adding tax separately at checkout.
Merchants use tax-inclusive pricing because it can:
Provide pricing transparency
Reduce surprises at checkout
Improve the customer experience
Match local pricing expectations in regions where tax-inclusive pricing is standard (such as many VAT-based countries)
Simplify displayed product prices
In Shopify, enabling tax-inclusive pricing means the listed product price already includes the applicable tax, and Shopify calculates the tax portion from that price during checkout.