Magento Commerce, 1.14.x

Cross-Border Price Consistency

Cross-border trade (also referred to as price consistency) supports European Union (EU) and other merchants who want to maintain consistent prices for customers whose tax rates are different than the store tax rate.

Merchants operating across regions and geographies can show their customers a single price by including the tax in the price of the product. Pricing is clean and uncluttered regardless of tax structures and rates that vary from country to country.

Important! When cross-border trade is enabled, your profit margin changes by tax rate. Profit is determined by the formula: (Revenue - CustomerVAT - CostOfGoodsSold).

To enable cross-border price consistency:

1. On the Admin menu, select System > Configuration.
2. In the panel on the left, under Sales, select Tax.
3. Click to expand the Calculation Settings section. Then, do the following:
a. Set Catalog Prices to “Including Tax.”
b. To enable cross-border price consistency, set Enable Cross Border Trade to “Yes.”
4. When complete, click the Save Config button.