Add tax
or tax included?
Two different calculations. Use the one that matches what you agreed with the client.
中文说明
价外税:明细不含税,税额另加;含税:客户看到的总价已含税,税额要从总价里倒算,不能再次加税。下面有 $1000/10% 的具体例子。
1. Add tax on top
Your prices exclude tax. The client pays the line items plus tax.
subtotal = 1,000 discount = 0 tax 10% = 100 total = 1,100
With a 10% discount: base = 900, tax = 90, total = 990.
2. Tax included
The agreed total already contains tax. The tax is the part inside the total, not an extra line.
total = 1,000 net = 1,000 / 1.10 = 909.09 tax 10% = 1,000 - 909.09 = 90.91
With a 10% discount: total = 900, net = 818.18, tax = 81.82.
Common mistake
Adding 10% on top of a tax-inclusive total. A $1,000 inclusive total does not become $1,100; the tax is already inside the $1,000.
Free invoice generator
The invoice generator has both modes: Add tax on top and Tax included. It shows the tax inside the total when you choose included.
FAQ
What does tax included mean?
The price already contains tax. Divide the total by 1 + rate to find the net; the difference is tax.
Which mode should I use?
Add tax if your prices exclude tax; included if the agreed price is the final amount.
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Estimate only; not tax advice. Rules differ by country.