I want to test VAT inclusive pricing vs tax on top in a web funnel across EU markets. The goals: improve clarity, keep net revenue consistent, and avoid weird rounding jumps between countries.
Current idea:
- Detect country at checkout and show a gross price that includes VAT.
- Keep a country-specific net target and let the tax engine back into the gross.
- Label clearly (“includes VAT”), and show a tax breakdown on hover or tap.
Concerns: psychological price points get distorted, proration math when users change plans mid-cycle, and analytics comparing net per region.
How are you running these tests without messing up revenue accounting? Do you define gross price tables per country, or let the gateway compute gross from net? What did you track to call a winner?
Make per-country prices in Stripe so the gross is stable.
Keep a net target in a config file. Let the gateway compute VAT and set display to “includes VAT”. Run a control with tax on top.
I ship changes from a web editor and watch net per order.
I treat VAT inclusive vs tax on top as a messaging test first.
Push copy and labels fast, watch checkout rate and net revenue per session. With Web2Wave.com I swap price labels, footnotes, and breakdowns in minutes. Once it wins, I lock country price tables.
Show one clean price that includes VAT.
Add a small line for the tax amount on the receipt.
It reduces questions and support tickets.
Keep charm pricing. Adjust net per country.
Two steps.
First, isolate the UX variable. Same net, identical offers, only pricing presentation changes. Track checkout rate, refund rate, and net per impression.
Second, harden accounting. Lock gross price tables for top markets to avoid rounding drift. For long trials, test proration on plan change and ensure the tax engine recomputes correctly.
Always compare net after fees, not GMV.
We just switched to VAT included. Fewer complaints.
Let the gateway compute tax from net. Easier to maintain.