How to handle taxes at checkout for international orders
Handle taxes for international checkout by calculating destination VAT/GST and duties in real time, then displaying a single landed cost in the shopper’s local currency before payment. Collect required taxes at checkout and enable Delivered Duty Paid to avoid delivery surprises. Offer familiar, country-specific payment methods to increase trust and conversion. Generate tax-compliant invoices and retain location and transaction evidence. Maintain current rates, thresholds, and registrations to ensure compliance and minimize cart abandonment.
FAQ
### How does showing taxes upfront affect checkout conversion for international shoppers?
Displaying taxes and duties as a single landed cost reduces uncertainty, increases trust, and lowers abandonment. Pairing this with familiar local payment methods improves completion and authorization rates.
### When am I required to collect VAT/GST at checkout?
You must collect when the destination requires registration, thresholds are met, or schemes mandate pre-collection. If not required, disclose estimates clearly and indicate any charges due on delivery.
### What is the difference between DDP and DAP for international checkout?
DDP includes taxes and duties paid at checkout, preventing delivery charges and delays. DAP leaves taxes and duties for the buyer to pay on delivery, increasing risk of refusals.
### How do local payment methods influence tax collection success?
Offering familiar, country-specific payment methods increases payment acceptance and buyer confidence, enabling reliable tax capture at checkout and reducing drop-off caused by unfamiliar flows.
