Tax Calculations
How Cashvio calculates tax for tax exclusive and tax inclusive product prices.
Tax is calculated based on the tax rate set for each product. The Tax Included toggle on each product controls which method applies.
Tax Exclusive (Price does NOT include tax)
If the product price does not include tax:
- Tax = Subtotal × Tax Rate
- Total = Subtotal + Tax
Example: Product price is 100 EGP, tax rate is 14%
- Tax = 100 × 0.14 = 14 EGP
- Total = 100 + 14 = 114 EGP
Tax Inclusive (Price includes tax)
If the product price already includes tax:
- Price before tax = Price ÷ (1 + Tax Rate)
- Tax = Price - Price before tax
Example: Product price is 114 EGP (tax included), tax rate is 14%
- Price before tax = 114 ÷ 1.14 = 100 EGP
- Tax = 114 - 100 = 14 EGP
Important
The Tax Included toggle on each product controls how tax is calculated. Make sure this is set correctly to avoid pricing errors.