The Tax Rate(s) Applied on the Invoice
The tax rate is the percentage applicable to the value of goods sold. It is a consumer tax and is therefore applied to the value of goods sold. Even though the rate or percentage of tax differs from country to country, the primary mechanism of the application or calculation remains the same:
Price inclusive of tax = Price exclusive of tax * (100 + Tax rate) / 100
Price exclusive of tax = Price inclusive of tax / (100 + Tax rate) * 100
Tax rate = (Price inclusive of tax / Price exclusive of tax - 1) * 100
Typically there are standard tax rates, however some categories of products or services may have reduced tax rates or to be exempt from tax.
Invoicing tools: