Inclusive Tax Needs To Display Full Price In Order Form

[ayleidex]

When an item is using an inclusive tax it is preferable to display the whole amount with tax on the order form instead of the unit price. In Australia we are obligated to show prices inclusive of tax where tax is normally applied to customers. The order form needs to accommodate that the prices display the tax inclusive amount.

a similar post - Inclusive Tax Is Calculated Exclusive Instead, Started by wdfee, Aug 20 2013 11:56 AM was discussing that inclusive tax doesn't work. I believe the issue is that no one sees the tax amount until the checkout process.

It is easier to manage the units where the unit price is independent from the tax amount applied, I agree with this process. WHMCS uses a system that calculated backwards from the price set for inclusive amounts and this may be unnecessary. But what WHMCS does well is display the full price on the order form. In fact this process is done very well when using WHMCS and Blesta would benefit from modifying the way in which the order form is calculated.

Invoices are doing the right thing and doing the calculations for tax correctly, invoices display the line item as the full amount with tax applied and then calculated as a sub total. The only issue I have is that the order form needs to also address this.

 

As advised from WHMCS about inclusive taxes

By default, tax is exclusive. What this means is that the prices you enter into WHMCS need to have tax added onto them at the rates you've set. The alternative is inclusive tax. Oppositely, this means that the prices you enter into WHMCS already have tax included in them and WHMCS needs to work backwards to calculate the amount of tax being charged based on the rates you've set. You can choose the tax method you want to use in Setup > Payments > Tax Rules.

• Exclusive Tax > Tax Amount = Item Price x ( Tax Rate / 100 )
• Inclusive Tax > Tax Amount = ( Item Price / ( 100 + Tax Rate ) ) x Tax Rate

When an item using inclusive tax then the full price needs to be displayed, this is also a requirement of the Australian Tax Office, and is consistent with practices in the industry. it is reasonable that if I was a customer I would prefer to see the full prices rather than the unit price, as a service provider I should be able to at least modify settings to implement this into the display of the order on forms.

 

[Max]

+1

 

This is a legal requirement in more countries.

You are only allowed to display prices excluding VAT here if you only sell b2b, and do not have consumers as customer.

 

 

>WHMCS uses a system that calculated backwards from the price set for inclusive amounts and this may be unnecessary.

 

Calculating backwards is actually the right way of doing things to prevent rounding errors.

 

If I advertise domains for 15 EUR each, the customer must be able to get 1 domain for 15 EUR inclusive VAT and 2 domains for 30 EUR.

However if you enter a unit price of 12.40 EUR exclusive 21% VAT, 2 domains will result in 2 x 12.40 x 1.21 =   30.008 = 30.01 rounded, 1 cent too much.

[dado023]

+1

 

Calculating backwards is actually the right way of doing things......

 

 

This