Inclusive Tax Is Calculated Exclusive Instead

[wdfee]

Unfortunately the inclusive tax feature doesn't work. If I set an inclusive tax and add a new invoice, the tax is always added to the price. :-(

[Michael]

I believe this bug has been found and fixed in 3.0.1 because I remember someone saying about inclusive tax. There was three CORE- but I can't find the thread.

[Cody]

There are a few existing tasks with regard to inclusive tax:

 

CORE-652 - Order: Need to display service prices with any tax inclusive amounts

CORE-650 - Tax Rules: Add option to control whether tax amount is displayed as inclusive or exclusive

 

In come countries (VAT countries in Europe, Australia, and New Zealand) line items include tax however tax rates are still calculated exclusively (like sales tax). Blesta currently handles these just fine. However, in a number of countries (Sweden, for example) line items include tax and tax rates are calculated inclusively.

 

 

Unfortunately the inclusive tax feature doesn't work. If I set an inclusive tax and add a new invoice, the tax is always added to the price. :-(

 

Can you provide an example of what you mean? "Inclusive" means tax is included in the price. As with any bug report we need as much information as possible. Please see How to Report a Bug.

[wdfee]

sorry, I do my best, but I don't see it inclusively anywhere.
 
step by step:

• I created my tax rule with type "inclusive" (for Germany = "MwSt.", 19%)
• I opened a client and clicked "create invoice"
• I entered a description, quantity, unit price - at this step I already can see the subtotal and total.
  for example: quantity "3", unit price "8.00"
  subtotal "24.00", total "24.00" - ok so far
• Now I click on the tax checkbox - and it changes the following:
  subtotal "24.00", tax "4.56", total "28.56"
• it goes on with this when saving and creating invoice.

The meaning of "inclusive" as I understand it would be:

subtotal "20.16", tax "3.83", total "24.00"

[wdfee]

The line tax I can't see anywhere, but I'd very appreciate seeing it at least in the invoice template.

[wdfee]

the same calculation happens when using a package / service.

for example: a service with price 5.00 € per 3 months added to a client, creates an invoice with subtotal 5.00 €, tax 0.95 €, total 5.95 €.

it should be subtotal 4.20 €, tax 0.80 €, total 5.00 €

[Cody]

sorry, I do my best, but I don't see it inclusively anywhere.

 

step by step:

• I created my tax rule with type "inclusive" (for Germany = "MwSt.", 19%)
• I opened a client and clicked "create invoice"
• I entered a description, quantity, unit price - at this step I already can see the subtotal and total.

  for example: quantity "3", unit price "8.00"

  subtotal "24.00", total "24.00" - ok so far

• Now I click on the tax checkbox - and it changes the following:

  subtotal "24.00", tax "4.56", total "28.56"

• it goes on with this when saving and creating invoice.

The meaning of "inclusive" as I understand it would be:

subtotal "20.16", tax "3.83", total "24.00"

 

The problem is you're entering your unit price as the price including tax. The amount you enter for the unit price should not include any tax. The tax is calculated and included on the line item in the invoice.

[wdfee]

yes, in Blesta 2.5 I always used my calculator to first calculating "what do I have to put in here, that I get the price result I want".
I was so happy to hear, that "inclusive" feature is coming. Because I think, that I shouldn't need a calculator, the billing system should handle this. So I got this wrong and this not a bug.
One enhancement (thank you for this) is, that I can put more number of digits after the decimal point to really get the price I want.

[Cody]

There are a number of issues with including tax in the unit prices. For example, if you set up 20 packages with 5 price points each and the tax rate changes from 19% to 35% you would have to update 100 different prices just to ensure that you're continuing to pass that extra 16% tax along to the customer instead of paying it yourself!

 

But if you'd like to be able to enter unit prices that include tax, I encourage you to create a feature request.

 

Closing as not a bug.