Magento 2 VAT tax calculation with countries with different tax percentage is calculated incorrectly

[laxev255470a2e]

The issue is due to Magento recalculating VAT when a different country is selected. To fix this, go to Stores > Configuration > Sales > Tax and ensure that Price Display Settings are set to Including Tax for both product and shipping prices. Then, check that your product's tax class is set correctly under Catalog > Products. Make sure your tax zones and rates for both countries are configured correctly under Stores > Tax Zones and Rates. If the problem persists, you may need to override VAT calculation logic in checkout, which may require custom development. Additionally, using tools like notes ai can help track and optimize your tax settings and calculations to avoid such issues.

[andrewmilm64f8]

Thanks for sharing this thread — enabling Cross Border Trade really does solve the issue where VAT-inclusive prices change across countries. I had a similar situation while working with multi-region tax settings, and the solution worked perfectly. I also appreciate how clear the Magento tax configuration settings are once you know where to look. Credit to the team at CalculateHELOC for pointing me in the right direction when I was troubleshooting pricing consistency for EU stores.