> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dodopayments.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Tax Inclusive Pricing

> Show final, tax‑inclusive prices upfront. Dodo calculates tax by location and clearly breaks it out at checkout and on invoices.

## 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.

<Info>
  Final tax still varies by customer location and tax category. Checkout and invoices show the calculated tax portion derived from the displayed price.
</Info>

## 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

## Product Setup

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

#### 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.

<Warning>
  Only future purchases reflect updated tax‑inclusive settings. Existing purchases and active subscriptions are not retroactively changed.
</Warning>

<Tip>
  Use consistent product copy such as “Tax inclusive” so customers understand totals at a glance.
</Tip>

## API Management

<AccordionGroup>
  <Accordion title="Create products (tax inclusive)">
    Use `POST /products` to create products with `tax_inclusive` set to `true`.

    <Card title="API Reference" icon="code" href="/api-reference/products/post-products">
      Create product via API
    </Card>
  </Accordion>

  <Accordion title="Update products">
    Use `PATCH /products/{id}` to toggle `tax_inclusive` on existing products.

    <Card title="API Reference" icon="code" href="/api-reference/products/patch-products">
      Update product via API
    </Card>
  </Accordion>

  <Accordion title="Checkout Sessions">
    Use `POST /checkouts` to sell products marked as tax inclusive. The displayed price remains the same; checkout derives net amount and tax.

    <Card title="API Reference" icon="code" href="/api-reference/checkout-sessions/create">
      Create checkout session
    </Card>
  </Accordion>

  <Accordion title="Refunds (tax handling)">
    Use `POST /refunds` to issue refunds. You can specify whether the refund is tax inclusive using the `tax_inclusive` flag when applicable.

    <Card title="API Reference" icon="code" href="/api-reference/refunds/post-refunds">
      Create a refund
    </Card>
  </Accordion>
</AccordionGroup>

## Integration Examples

### Create a product with tax‑inclusive pricing

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

### Update an existing product to toggle tax inclusive

```typescript theme={null}
await client.products.update(product.id, {
  price: {
    tax_inclusive: true
  }
});
```

## 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.

## Related

<CardGroup cols={2}>
  <Card title="Products" icon="dollar-sign" href="/features/products">
    Manage pricing options across products.
  </Card>

  <Card title="Subscriptions" icon="repeat" href="/features/subscription">
    Configure recurring products with advanced settings.
  </Card>

  <Card title="Discount Codes" icon="percent" href="/features/discount-codes">
    Offer promotions while keeping invoice clarity.
  </Card>
</CardGroup>