Inclusive taxes

Hello, i will explaing briefly my usual invoice:

Service: 1000€
Included tax 20%: 200€ [(1000/100)*20]
Total: 1000€

Invoiceninja applies a strange inclusive tax (166.67€). How can i edit the formula?

Hi @roberto722

I guess, the calculation is correct.

VAT = value added tax.

If a country has a VAT of 20% and you see an item in store for 100 $/€/£, then the gross value of 100 is including the tax. So 100 $/€/£ is 120%.

100/120*20 = 16.666666667

I hope this helps.


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yes, in my case it’s not a VAT, but a special tax. This tax is calculated in the way i described. Just wanted to know if there is a way to change formula for inclusive taxes for my specific need.

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I’m not sure if this is possible, @david any ideas?

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I’ve never seen tax calculated this way. If you can point us to some formal documents that explain how this works we can take a look. I agree with @ecomsilio this is the way I’ve seen taxes calculated where the tax is included in the price. Otherwise the tax can be added to the total, ie 1000 + 20% tax = 1200

It’s an italian tax, in english should be “witholding tax”, that is applied when a worker has not a VAT number and does not provides his services habitually.
I leave you a useful link, even if it’s in italian and you should translate it: Ritenuta d’acconto: come funziona e chi la paga

However, the formula is the one i posted at the start of this thread: (item / 100) * tax_rate.

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