Inclusive taxes... aren't?

Hi, currently trialling InvoiceNinja 3.9.2 (self-hosted) in Australia. I suspect “in Australia” may be key here.

What I do: apply an “inclusive” tax to a line item.

What I expect: the cost of the tax is calculated and presented as a subtotal (i.e. the item’s cost is “inclusive” of whatever tax rate is applied). Note that in Australia, a $100 item including 10% GST would include $9.09 tax.

What actually happens: the cost of the item is reduced and the cost of the tax is added to the total.

What makes it worse #1: if I change to a different (inclusive) tax, the cost of the item is further reduced, affecting the final invoice total cost.

What makes it worse #2: if I change the item’s cost, the applied tax is recalculated on top of that cost. To avoid this, I have to instead un-apply the tax, change the cost, then re-apply the tax - at which point I am back to the original problem of “what I expect” not equalling “what actually happens”.

Incidentally: when “Include line item taxes in line total” is ticked in Settings / Tax Rates, that change is applied to the PDF but not the form.

  • Sorry, that’s just how it works. In other countries the price needs to be listed without the tax. If you’re using line item taxes maybe showing the line item taxes in the total will help.

  • The inclusive amount is calculated when applied, if you need to change the tax I’d suggest removing/readding the line item to the invoice.

  • For most settings the form stays the same, these changes are only meant to be applied to the PDF.

  • Thankyou, I’ll try using that and see how it goes.

  • Quicker just to re-enter the net cost and remove/reapply the tax.

  • Please consider an option to have the form show the same Line Total as the PDF? Perhaps with a “Unit Total” column so that we can see each line item’s pre-tax costs?

FYI… we’re working on a solution for inclusive taxes in our next release.

Was this every fixed? I have a need to show discounted line item price. If I have a $100 item that I want to discount 10%, then the discounted item price should reflect $90 NOT $90.91… Please let me know if there is a workaround.

What I am trying to work out is that I have a base price for each different product. From there, I have quantity discounts which I apply to the base price ( Base Price x Discount= selling price per line item). With this, I am trying to use this on your quote system. I know that inclusive will adjust the line item price… but I need it to calculate like exclusive.

The inclusive feature was implemented, it can be enabled in a blank company on Settings > Tax Rates.

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Thanks Hillel, but does this mean I have to create a new company and transfer all my data to a new account?

I’m not sure that would work, you’d need to modify the data before importing.

Note: in v5 we’ve added the ability to change this setting in an active company.

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