How Taxes Work (Exclusive vs. Inclusive)

You can apply taxes to your invoices or estimates in two different ways:

Exclusive Tax

The tax is added on top of the total amount.

• Example: If the item costs $100 and the tax is 10%, the total will be $110.

• Best when you want to show the tax as an additional charge.

 Inclusive Tax

The tax is included in the total amount.

• Example: If the item costs $100 with a 10% tax inclusive, the subtotal is $90.91 and the tax is $9.09 — total still $100.

• This allows you to define a fixed final amount while still showing how much tax is included.

How to Set It Up:

1. When creating or editing an invoice or estimate, scroll to the bottom of the screen.

2. Tap Tax to turn it on.

3. Choose:

   • Exclusive to add tax on top of the total

   • Inclusive to include tax within the total amount

4. Set your desired tax rate (e.g., 10%).

Important: If an item is not flagged as taxable, it will be excluded from the tax calculation. You can control this by tapping each item and enabling or disabling the Taxable option: