# Issue with VAT calculation

Hi there,

I have a problem with VAT calculations today.
When I use 10% VAT, the calculation is wrong and I don’t get 10% of the whole amount.
You can find an example here :

Before today, the VAT amount would have been 1.42\$ as the correct 10% amount of 14.25\$.
Since this morning, the VAT is calculated with around 9.09% and I don’t know why.
I think I didn’t change any setting about VAT.
Anyone has an idea about how can I get a real 10% again on my invoices ?

It appears that the calculation is Tax Inclusive instead of Tax Exclusive - 12.95 + 10% = 14.25.
Furthermore your screenshot layout is for a Tax Inclusive invoice, Tax Exclusive layout looks like this:

Check that the Tax Inclusive tick box hasn’t been ticked or set as default

I want the calculation to be Tax Inclusive and not Tax exclusive.
The amount I’ve paid is 14.25\$ including 10% VAT.
The amount of VAT that I’ll get back will be 1.43\$
So I want the invoice to be like this :

## Divers Material 14.25\$

Total 14.25\$
Including VAT 10% 1.43\$

It always has been like this before on my invoices and I dont get why it’s like this from today.
Its the same for my sales invoice :

My total sales is 691.50\$ and I should pay 10% VAT on it.
So it would be 69.15\$ instead of 62.86\$
Those wrong figures are distorting my balance sheet because the VAT amount is not correct.

Then the actual tax amount will ALWAYS be less than 10% of the total, NOT 10% of the total.

No, VAT is a Value Added Tax, That means the tax is added to the items value, the tax is not deducted from the total price.

No, it should be 62.68. The sale value is 628.64 and the VAT of 10% (62.86) is added to total 691.50

Your balance sheet is not distorted as the VAT amounts are correct.

If what you say is correct then EVERY Manager user would be having incorrect tax calculations - but they aren’t having incorrect calculations.

If an items value is 100, then the 10% (1/10) VAT is added to total 110.00 - tax exclusive
If an items total is 110, then deduct 1/11 (110/11) or 10 to get the items value 100 - tax inclusive

Can you show a screenshot example of - It always has been like this before on my invoices.
That is - a “tax inclusive invoice” format with the tax equalling 10% of total