Incorrect price with inclusive tax calculation

I am very pleased that in version v5 the “inclusive tax” calculation has been adapted to the system often used in Germany/Austria.

This is how I configured it and this is how it should be

However, it is still calculated as an exclusive tax. Here is a simple example:

If the tax calculation is included, it should look correct as follows:

Subtotal: 81 €
MwSt. 19%: 15,97 €
Total: 100 €

Whether I use “Invoice Tax Rates” or “Item Tax Rates” makes no difference both do not calculate correctly.

@psycho0verload

Thanks for reporting this. It looks like a regression.

ping @hillel

@psycho0verload

I’ve checked in a fix, this will be available in the next release.

1 Like

@david Did you check in the fix yet?

yes it is on the v5-develop branch currently, i am planning a new release itself tomorrow.

Hi David, I have looked at the Develop branch and the billing is now correct. Is it possible to show the net amount instead of or in addition to the subtotal.

Alternatively a checkbox at “Tax settings” like: Show net amount.

I have created an example to clarify the function:

“Tax settings”

“On Invoice”

@psycho0verload

I’ve think we’ve been discussing this internally also, showing the total without taxes.

I think we can add in an option to add this in @hillel thoughts?

Sure, sounds like a good idea

Hi @hillel,
Hi @david,

To show the net amount is relevant in the German tax law and therefore also interesting to produce even more customers for invoiceNinja.com as well as to bring the community invoiceninja.org further.

Thanks for the work and the interest in this idea :slight_smile:

@psycho0verload

Thanks, this will be available in the next release.

I have already discovered “Add net_subtotal option #6294”. Is this still included with my suggestion or does it have to be implemented via the customfields?

I found it in the design editor! Thanks a lot!

@hillel please note that you still have a bug in inclusive VAT calculation/presentation on the invoice. It has worked in the v4 and now I see a regression.

The problems are as follows:

  1. when creating an invoice we select the client and the product with appropriate price (unit_cost) - let’s assume it is 50 - unit_cost is a net item value (without vat)
  2. then we select vat rate - let’s assume 20% (the system is configured for inclusive VAT calc)
  3. The system presents on th ePDF invoice the following:

Unit cost 50 → wrong, should be net item value: 41.6 (50/1.2)
quantity 1
Tax 20%
line_total 50 → wrong, should be net item value: 41.6 (50/1.2)

net_subtotal: 41.6
subtotal 50
VAT 8.4
total 50

The biggest problem here is that under Posh VAT rules the invoice needs to present a net value for each item. It’s impossible to do it now. V4 after selecting inclusive vat rate was updating the unit_cost by dividing it be (1+%VAT)…

Please update the algo.

Best Regards,
Robert

If you feel there’s a bug in the app which needs to be looked into please create an issue on GitHub:

Thank you @hillel

I think that you need to seriously review the way VAT is being calculated and presented. In the 4.5 version I was able to issue both the invoice with inclusive 10% VAT (90.91+9.09) and additional vat (100+10). In the version 5 I have to change global vat calculation settings to do that. However due to the bug described above I cannot even do that. I had to change labels to be compliant with the Polish VAT legislation and now if I tweak inclusive vat setting then I end with bad invoice. So my only options are stop using invoiceninja5 and moving elsewhere or moving back to v4.5. Is there a way to migrate data back to v4.5 from v5? I guess fixing the above bug and adding the ability of issuing invoices with both inclusive and exclusive vat won’t happen this month?

Sorry, the migration only works in one direction.

You may be able to transfer data using the CSV import/export.

Here is the bug report: bug in inclusive VAT calculation/presentation on the invoice · Issue #9229 · invoiceninja/invoiceninja · GitHub

How long will it take to fix it?

Sorry, we aren’t able to provide ETAs for future changes.