Articles on: Reports

# Calculations of Taxes

In KaHero POS, There are two types of taxes that can be applied to items.

Added to the Price and Included in the Price

# Added to the Price

Calculate the value of the "**Added to the Price**" tax, you have to multiply the item price by the tax rate in decimal form.

Given the tax rate 25%, multiply the item’s price by 0.25. If the item is P100.00, the value of the "**Added to the Price**" tax will be 100×0.25 = PHP25.00.

# Included to the Price

"**Included to the Price**" tax means that the tax has already been applied to the item price. Meaning, the price displaying on your receipt is the composition of the pre-tax price and the tax applied.

Given the tax rate 25%, divide the item’s price by 1.25. If the item is P130.00, the value of the pre-tax price will be 130/1.25 = PHP104.00 and the value of the "**Included to the Price**" tax will be 130 - 104 = PHP26.00s.

# Calculating Several Taxes

###### **Added to the Price**

Multiple "**Added to the Price**" taxes of items is calculated the same way as one single tax.

If the item is P100.00 with "**Added to the Price**" Tax A = 25% & "**Added to the Price**" Tax B = 10%, the value of the "**Added to the Price**" tax will be 100×0.35 = PHP35.00.

###### **Including to the Price**

Multiple "**Included to the Price**" taxes of items is calculated the product of the item price and tax rate, divided by the sum of all the tax rates plus 1.

Included Tax = (price x tax rate) / (1 + (Tax A + Tax B + Tax ...)

If the item is P60.00 with "**Included to the Price**" Tax A = 25% & "**Included to the Price**" Tax B = 10%, the value of the "**Included to the Price**" Tax A will be PHP11.11 & Tax B will be PHP4.44.

###### **Both Applied**

"**Added to the Price**" taxes of items is calculated the product of the tax rate and item price minus the sum of the amount of all included tax.

Added Tax = Added To The price x (price - (Tax A + Tax B))

If the item is P100.00 with "**Included to the Price**" Tax A = 25% & "**Added to the Price**" Tax B = 10%, the value of the "**Added to The Price**" will be PHP10.00.

Updated on: 04/08/2021