# Create sales invoice with tax-inclusive amounts

If you charge tax, by default unit prices on sales invoices are treated as tax exclusive. You can make unit prices tax-inclusive when creating or editing invoices.

Tax exclusive means, when line items on the invoice are subject to tax, the tax will be added to the tax-exclusive total.

For example, let’s say we charge a customer 1,000 with 10% tax.

Since the amount of 1,000 is tax exclusive, when you create the invoice, 10% tax will be added to the 1,000, increasing the total to 1,100.

Many businesses prefer to show tax-inclusive prices on invoices. For example, you sell a widget for 999 which should be inclusive of tax. In order to do that, make sure `Amounts are tax inclusive` is checked.

Then enter unit price `999`.

When viewing the invoice, you will notice the tax of 10% wasn’t added to the amount of `999`. The balance due is `999` and the invoice shows the tax amount.

@lubos Kindly note that our VAT rate in Kenya is 16% and manager is not calculating correctly, we have to add upto 19% for it to calculate 16%…this is the desktop version.

Is the 16% an exclusive or inclusive rate - as 19% added on is the inverse of 16% subtracted off

Tax exclusive : 100 + (100 * 19%) = 100 + 19 = 119
Tax inclusive : 119 - (119 * 16%) = 119 - 19 = 100

Manager doesn’t appear to have any rate for Kenya, so did you add a custom rate

Yes it was a custom VAT rate but the tax generated isn’t in order, is there something am missing?

Are you entering your values as tax exclusive or inclusive. Check out the following examples:

A 100 sales or purchase invoice excluding tax would look like this

A 100 sales or purchase invoice including tax would look like this
(with the tax inclusive box ticked

Calculation - 86.21 * 16% = 13.79
How do these examples compare to your own transactions?

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Thanks for the response. I understand what you mean. If I tick then put the tax again it double taxes. Let me check with my client then get back to you.