Tax Breakdown: How Calculations Work
Back to Legal SettingsWhat you’ll need
- Active Inventory Management subscription
- Manage taxes permission
- Access to the TaoRocket Console
1. Understanding Pre Net Sales
Pre net sales is the starting point for tax calculations.
It is calculated as:
2. Types of Taxes in TaoRocket
TaoRocket supports different tax types that affect calculation order and amounts:
- Non-Fiscal Included Taxes: Taxes included within the pre net sales amount.
- Non-Fiscal Excluded Taxes: Taxes applied on the pre net sales minus non-fiscal included taxes.
- Fiscal Included Taxes: Taxes included but calculated on the pre net sales plus non-fiscal excluded taxes.
- Fiscal Excluded Taxes: Taxes added on top, calculated on pre net sales plus non-fiscal excluded taxes minus fiscal included taxes.
3. Tax Calculation Order and Formula
TaoRocket calculates taxes in the following sequence:
- Calculate Non-Fiscal Included Taxes from pre net sales.
- Calculate Non-Fiscal Excluded Taxes from (pre net sales - non-fiscal included taxes).
- Calculate Fiscal Included Taxes from (pre net sales + non-fiscal excluded taxes).
- Calculate Fiscal Excluded Taxes from (pre net sales + non-fiscal excluded taxes - fiscal included taxes).
4. Example Calculation
Suppose:
- Pre net sales: 1,000 THB
- Non-fiscal included tax: 5%
- Non-fiscal excluded tax: 2%
- Fiscal included tax: 7%
- Fiscal excluded tax: 3%
Calculation steps:
- Non-fiscal included tax = 1,000 * 5% = 50 THB
- Non-fiscal excluded tax = (1,000 - 50) * 2% = 19 THB
- Fiscal included tax = (1,000 + 19) * 7% = 73.33 THB
- Fiscal excluded tax = (1,000 + 19 - 73.33) * 3% = 28.01 THB
- Total taxes = 50 + 19 + 73.33 + 28.01 = 170.34 THB
5. Why Understanding This Matters
Knowing how TaoRocket calculates taxes helps you:
- Ensure pricing and billing accuracy.
- Better interpret sales reports and tax summaries.
- Comply with local tax regulations.
Resume table
| Fiscal tax | Included in price | Calculation priority | Use example |
|---|---|---|---|
| Yes | Yes | 1 | 7% VAT for general public |
| Yes | No | 2 | 7% VAT for businesses |
| No | Yes | 3 | 5% sale commission for employees |
| No | No | 4 | 10% service charge for customers |
Related articles
- 🔗 Company Details: Changing Name & Address
- 🔗 Store Details: Updating Store Info
- 🔗 Tax & Fees: Configuring Taxes and Service Charges
🎉 Understanding tax calculations in TaoRocket makes managing your business finances more transparent and accurate.