Do I need to list prices tax excluded or tax included?
We are often asked if prices must be entered without tax or with all taxes included, typically for products or services.
The most important thing to consider is what happens if the tax (e.g., VAT) rate changes. Will your products and services have to increase in price or stay at the same price (decrease or increase in revenue in line with the new tax rate)?
Another point to consider is rounding linked to the currency used. For example, in Switzerland, amounts are rounded to the nearest 0.05. If you’ve activated the option to display prices tax included,we advise that you enter your prices tax included in order to avoid any rounding problems.
How do I specify this information ?
The software allows you to specify whether the price is shown tax excluded “Tax excl.” or tax included “Tax incl.” for each of your products and services.
What happens if the tax rate changes?
If the tax rate (e.g., VAT or sales tax) changes, all you have to do is change the rate. The prices of your items will be automatically recalculated using the new rate, with the selected price display mode determining the calculation of the inverse price (Tax excl. > Tax incl. or Tax incl. > Tax excl.).
Rest assured that this will not impact your previously established quotes and invoices (finalized documents).