Should I list prices excluding tax or including tax?

We are often asked whether prices should be entered excluding tax or including tax, 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 need to increase in price, or should they stay at the same price (decreasing or increasing revenue depending on 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 tax-inclusive prices, we recommend entering your prices including tax to avoid rounding issues.

How do I specify this information?

The software lets you specify whether the price is shown excluding tax (“Excl. tax”) or including tax (“Incl. tax”) 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, just change the rate. Item prices are automatically recalculated using the new rate, with the selected price display mode determining the inverse calculation (excluding tax → including tax, or including tax → excluding tax).

This will not affect your previously finalized quotes and invoices (finalized documents).