Configuring Tax Handling

Deviking Paddle Gateway allows Paddle to remain the source of truth for VAT and sales tax calculation.

You do not need to manually maintain VAT rates for every country inside WooCommerce.

Tax handling

Three modes are available.

Automatic based on customer location

Paddle decides whether the displayed product price should be treated as tax-inclusive or tax-exclusive according to the customer’s location.

This is suitable when you want Paddle’s standard localized pricing behavior.

Price excludes tax — add tax on top

Use this when your WooCommerce product price represents the price before tax.

Example:

Product price:

€100.00

Customer located in Greece:

VAT 24%: €24.00

Total:

€124.00

This is the recommended setting when you want the applicable VAT or sales tax to be paid in addition to your WooCommerce product price.

Price includes tax

The WooCommerce product price is treated as already containing the applicable tax.

For example, if the product price is:

€100.00

Paddle calculates how much of that €100 represents tax rather than adding tax on top.

6.1 Checkout Tax Preview

Enable:

Show Paddle tax estimate and total payable in the WooCommerce checkout

When enabled, the plugin asks Paddle for a tax calculation before payment.

The WooCommerce order summary may therefore display:

Subtotal: €100.00
VAT 24%: €24.00
Total: €124.00

The percentage and tax amount come from Paddle rather than a manually maintained WooCommerce tax table.