Is tax hiding inside your price?
Add or remove VAT or sales tax using the rate you enter. See the customer total, tax collected and revenue before tax.
20% tax · removed from your entered total
Net = total ÷ (1 + tax rate). Tax = total − net. Amounts reconcile to the cent.
Questions answered
How do I remove tax from a price?
Divide the tax-inclusive total by 1 plus the rate as a decimal. At 20%, a total of 120 contains 20 in tax and 100 before tax. Subtracting 20% from the total gives the wrong result.
Does a Merchant of Record remove all tax work?
An MoR may handle sales tax for supported sales under its agreement. Your own income taxes, accounting and other obligations are separate. Compare the provider’s product scope.
Useful sources
Use the arithmetic with your actual rate, fee quote and account terms.
Read the worked example →Work through the next question.
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