The selection of a tax mode is one of the most important tax settings. The tax type determines how the information will be arranged in your invoices and how the tax will be calculated.

Clock PMS+ provides its users with a wide range of tax modes:

- No tax
- Tax included in prices, rounding - per line
- Tax included in prices, rounding - total
- Tax not included in prices, rounding - per line
- Tax not included in prices, rounding – total

## No tax

Under the "No tax" mode the gross and net amounts are the same, coinciding with the rate prices, as no tax is added to these prices.

## Tax included in prices, rounding - per line

В системата се конфигурират **брутни цени**. Данъкът се отделя от цените, зададени в тарифите.

Във фолиото данъкът се изчислява по следния начин:

1. For each folio line, the **TAX BASE **is calculated as per the following formula: Total/( 1 + Tax%/100). The resulting amount is rounded to the smallest monetary unit (usually 0.01).

Example for 20% Tax and final price of 100 EUR: 100/1.2 = 83.33333…, the rounded amount is equal to **83.33**.

2. For each folio line, the **TAX** is calculated as **PRICE** – **TAX BASE** = **TAX.**

Example for 20% Tax: 100 - 83.33 = **16.67**.

3. In the folio total section, the respective amounts are calculated by summing the lines.

Example for 20% Tax: Two lines, each containing a final price of 100 EUR:

**TOTAL TAX BASE** = 83.33 + 83.33 = **166.66.**

**TOTAL TAX** = 16.67 + 16.67 = **33.34**

**Note: Tax mode specifics:**If you calculate the tax on the basis of the TOTAL amounts, you will not have the same result. Example for 20% Tax: 200/1.2 = 166.66666…, the rounded amount is equal to

**166.67.**And the resulting tax base amount as per this tax mode is

**166.66**. See also the other tax mode:

**'Tax included in prices, rounding - total'**

## Tax included in prices, rounding - total

In the system, **the gross prices **are configured. The tax is determined by the prices set in the rates. The difference with the previous mode is the way the tax is charged.

In the folio, the tax is calculated the following way:

1. The folio TOTAL is calculated by summing the gross prices of each line.

Example: **Two** lines, each containing a gross price of **100 EUR**, and their total is: 100 + 100 = **200 EUR**

2. On the basis of this **TOTAL**, the **TAX BASE** is calculated using the following formula: **Total/( 1 + Tax%/100)**. The resulting amount is rounded to the smallest monetary unit (usually 0.01).

Example for 20% Tax: 200/1.2 = 166.66666…, the rounded amount is **166.67**

3. The **TAX** amount is calculated as **TOTAL** – **TAX BASE** = **TAX AMOUNT.**

Example for 20% Tax: 200 - 166.67 = **33.33**. Thus calculated, the TAX BASE and TAX are presented in the folio total section.

**as these amounts are rounded in each line.**

**two lines**, containing a final price of 100 EUR, is calculated the following way: Tax base = 100 / 1.2 = 83.3333… =

**83.33**

**Note: Tax mode specifics:**The sum of the individual tax base amounts of the folio lines DOES NOT correspond to the folio tax base. Example for 20% Tax: The tax base of the whole folio, calculated as per the above formula: Total/( 1 + Tax%/100), is

**166.67**, and the sum of the tax bases of the individual folio lines is 83.33 + 83.33 =

**166.66**. See also the other tax mode:

**'Tax included in prices, rounding - per line'**

## Tax not included in prices, rounding - per line

In the system, **the net prices **are set. When charging the services, the tax amount is automatically levied on the net prices.

In the folio, the tax is calculated the following way:

1. The** tax amount **of each line (charge) is calculated on the basis of the following formula:

**Tax Value = Bankers' Rounding (Net Value * (Tax Rate / 100))**

2. **The gross value for each line** (charge) is equal to the sum of the net amount and the tax amount in this line.

3.** The gross amount of the invoice** (invoice total) is equal to the sum of the values in the lines of the Gross amount column.

4. The **total tax amount** of the invoice is equal to the sum of the values in the lines of the tax column. For each tax rate, the sum of the corresponding tax amounts is shown in the invoice.

## Tax not included in prices, rounding – total

In the system, **the net prices **are set. The tax is charged the following way:

1. **No gross valu****e for each line** is calculated.

2.** The total net amoun**t of the invoice is the sum of the net amounts in each line of the Net column.

3.** The total tax amount **of the invoice is calculated on the basis of the following formula:

Rounding** (Total Net Value * (Tax Rate / 100))**. For each tax rate, the sum of the corresponding tax amounts is shown in the invoice.

4. **The total gross amount **is calculated as per the following formula: **Total Gross Amount = Total Net Amount + Total Tax Amount.**

**Note:**The round-half-to-even rounding method (Bankers' Rounding) is used for all tax modes.