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How WooCommerce's tax rate setting affects the default sales prices for imported products

The tax rate setting is important for defining Default sales prices for products on product cards in Katana

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated yesterday

When connecting WooCommerce to Katana, your tax settings in WooCommerce determine how product default sales prices are recorded in Katana.

Screenshot highlighting the default tax rate that can be added during the configuration of the WooCommerce integration

Important note

  • If your WooCommerce store is set to “No, I will enter prices exclusive of tax”, the tax rate field will not appear in the configuration setup.

  • If your store is set to “Yes, I will enter prices inclusive of tax”, you’ll need to provide a default tax rate during connection so Katana can correctly calculate tax-excluded Default Sales Prices.

  • To check or change this setting in WooCommerce, go to WooCommerce > Settings > Tax.


How Katana interprets WooCommerce prices

  • In Katana, default sales prices (on product cards) are always stored without tax. Taxes are only added when creating a sales order (SO).

  • In WooCommerce, you can decide whether product prices include or exclude tax.

This means Katana’s Default Sales Price depends on your WooCommerce tax setting:

  1. Prices entered inclusive of tax → Katana removes tax based on the default tax rate you provide.

  2. Prices entered exclusive of tax → Katana imports the price as-is, ignoring the tax rate.


Examples

Example 1: Prices inclusive of tax

  • WooCommerce product price: USD 100 (includes tax).

  • Default tax rate: 20% VAT.

  • Katana Default Sales Price: USD 83.33 (calculated as 100 ÷ 1.20).

Example 2: Prices exclusive of tax

  • WooCommerce product price: USD 100 (tax excluded).

  • Katana Default Sales Price: USD 100 (no adjustment needed).


Key takeaway

Your WooCommerce tax setting directly affects how Katana records Default Sales Prices:

  • Inclusive of tax → Katana strips out the tax based on the default rate you define.

  • Exclusive of tax → Katana imports the price unchanged.


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