Tax-inclusive price refers to a quoted price that already includes all applicable taxes (such as VAT, tariffs, consumption tax, etc.). In foreign trade, it is commonly used in domestic procurement, cross-border e-commerce, or DDP (Delivered Duty Paid) scenarios, indicating that the buyer does not need to pay additional taxes. When using it, the tax type, tax rate, and tax-bearing party should be clearly specified to avoid confusion with 'tax-exclusive price.' Note: Tax systems vary greatly across countries, such as EU VAT and US sales tax; before quoting, confirm the tax rate and whether it is deductible. Unlike trade terms such as FOB and CIF, a tax-inclusive price does not directly correspond to a delivery location but emphasizes tax bearing. If the tax type is not specified, disputes may arise. In addition, for export tax rebates, the tax-inclusive price may affect cost accounting. It is recommended to list tax details in the contract and indicate whether a VAT special invoice can be issued for the 'tax-inclusive price' to protect the rights and interests of both parties.
📝 Examples
1. This quotation is a tax-inclusive price, including 13% VAT, and a VAT special invoice has been issued. Please confirm and arrange payment. (Note: Specify the tax rate and invoice type to avoid subsequent tax disputes.)
2. For EU customers, we provide a DDP tax-inclusive price covering import VAT and tariffs, and you do not need to pay any additional fees. (Note: Use a tax-inclusive price under DDP terms to emphasize zero additional cost for the buyer.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner