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
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**" 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.
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.
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.
"**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.
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
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