How tax is calculated
The difference between inclusive and exclusive tax, and how the method follows your country.
Table of Contents
The method follows the country in Business details.
Tax inclusive: common in the UK. A £100 price with 20% VAT stays £100, of which £16.67 is VAT.
Tax exclusive: common in the US. A $100 price with a 10% tax becomes $110.
Discounts come off before tax. The Sales Tax report shows totals by rate.
Up next
Next, read Change a tax rate at the till.