Profit & costs
VAT-aware profit (net of VAT)
If your Shopify prices include VAT, turn this on so contribution margin nets VAT out of revenue first. Off by default; nothing changes until you turn it on.
Why it matters
EU stores typically price with VAT baked in (NL 21%, DE 19%, and so on). Computing contribution margin straight off that VAT-inclusive revenue overstates profit, since the VAT was never yours to keep in the first place.
Turn it on
- Open Settings > Store.
- Check "Prices include VAT".
- Set a default VAT rate, e.g. 21 for 21%.
- Optionally add per-market overrides for markets with a different or zero rate, e.g. "DE:19, US:0". A market not listed uses the default rate.
What changes
Once on, contribution margin nets VAT out of revenue before subtracting product cost, shipping, fees and ad spend, everywhere Vibel shows contribution margin. Revenue figures themselves are always shown gross; only the margin and profit figures are netted of VAT.
Good to know
- Off by default: existing numbers do not change until you turn this on.
- Give a market with no VAT (like most US sales) an explicit ":0" override so it is never netted against your default rate by mistake.
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