Tax Components of an Invoice

Invoice2go offers multiple tax options so that you can tax your customers on the products or services that you sell. This article explains the basic tax components of an invoice and how tax is calculated.

Invoice Header

  1. Document name: This can be modified in Settings to reflect the legal standards of your region.
  2. Space to include licence information: Such as your Tax or VAT registration number.

Invoice Body

  1. Tax column: Switch this on or off in Settings depending on if you need it to appear on your invoice.
  2. Amount: Equals quantity x rate.
  3. Tax column: Shows the percentage of tax applied per item.

Invoice Footer (tax exclusive example)

  1. Tax exclusive or tax inclusive: Set this per invoice or at an account level in Settings.
  2. Subtotal: Equals the sum of the Amount column.
  3. Tax: Calculated as a percentage of the Subtotal. This is the total tax being applied.
  4. Total: In this example Tax is set to exclusive so the Total equals the sum of the Subtotal and Tax.
  5. Balance due: Equals Total minus any amount that has been paid.

Invoice Footer (tax inclusive example)

  1. Tax exclusive or tax inclusive: Set this per invoice or at an account level in Settings.
  2. Subtotal: Equals the sum of the Amount column.
  3. Tax: Calculated as a percentage of the Subtotal. This is the total tax being applied.
  4. Total: In this example Tax is already included in the price so Tax is calculated by dividing the Subtotal by 11.
  5. Balance due: Equals Total minus any amount that has been paid.
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