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Taxes


cibertec

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I created my first invoice today that had taxes with it and I was confused on how the process works. I'm in the US and my tax is 7% here is the example.

 

Equipment - $50.00 T

Labor $70.00

 

Subtotal $116.72 (shouldn't subtotal be $120.00)

Tax $3.27 (this is not 7% of 50)

 

Total $120.00 (shouldn't total then be 123.27

 

So do I need to just add my tax in with the total amount. Say instead of saying $50 I need to put the total $53.50 since 7% is $3.50.

 

I've never seen a program do taxes this way. Most programs add the two prices together as subtotal then add the taxes for the total.

 

How should I configure the invoices to get the right tax amounts.

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  • WHMCS CEO

You have setup WHMCS to use inclusive taxes in Configuration > Tax which is the way a lot of countries in the EU require it. And you are right, there aren't many systems that support this so this is an advantage of WHMCS. If you don't want inclusive taxing then simply set it to use exclusive taxing in the Tax Configuration area.

 

Matt

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  • 1 month later...

Matt, is there anyway to have different tax profile in terms of inclusive/exclusive for different product groups?

 

For example, product group A requires inclusive taxes and product group B requires exclusive taxes. Is there anyway to accomodate that?

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