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What Is Tax Inclusive Pricing?

Tax Inclusive Pricing lets you embed applicable taxes directly in your displayed product price. Customers see one final amount upfront for a more transparent, conversion‑friendly experience. At checkout, Dodo calculates the tax‑exclusive portion and tax amount from the displayed price based on customer location, and clearly breaks them out on the invoice.
Final tax still varies by customer location and tax category. Checkout and invoices show the calculated tax portion derived from the displayed price.

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Key Benefits

  • Clarity for customers: One final price displayed upfront
  • Compliance by region: Tax is calculated per location and broken out
  • Accurate invoicing: Invoices show net amount and tax derived from price
  • Conversion friendly: Reduced surprises at checkout

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Product Setup

Create or edit a product in your dashboard, then enable tax‑inclusive pricing under pricing settings.

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Pricing

  • Price (required): Base price that is displayed to the customer.
  • Tax Inclusive Pricing: Toggle on to treat the displayed price as tax inclusive. Dodo will compute the net (pre‑tax) amount and tax portion at checkout based on customer location and tax category.
Only future purchases reflect updated tax‑inclusive settings. Existing purchases and active subscriptions are not retroactively changed.
Use consistent product copy such as “Tax inclusive” so customers understand totals at a glance.

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API Management

Use POST /products to create products with tax_inclusive set to true.

API Reference

Create product via API
Use PATCH /products/{id} to toggle tax_inclusive on existing products.

API Reference

Update product via API
Use POST /checkout-sessions/create to sell products marked as tax inclusive. The displayed price remains the same; checkout derives net amount and tax.

API Reference

Create checkout session
Use POST /refunds to issue refunds. You can specify whether the refund is tax inclusive using the tax_inclusive flag when applicable.

API Reference

Create a refund

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Integration Examples

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Create a product with tax‑inclusive pricing

const product = await client.products.create({
  name: 'Pro Plan',
  description: 'All features included',
  price: {
    currency: 'USD',
    price: 10000
    tax_inclusive: true
  }
});

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Update an existing product to toggle tax inclusive

await client.products.update(product.id, {
  price: {
    tax_inclusive: true
  }
});

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Best Practices

  • Choose the right tax category to ensure correct calculation per region.
  • Communicate totals clearly with “Tax Inclusive” labels in product copy.
  • Test in sandbox to validate.

Product Pricing

Manage pricing options across products.

Subscriptions

Configure recurring products with advanced settings.

Discount Codes

Offer promotions while keeping invoice clarity.
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