BokepingWhy is the sales tax on an invoice unexpected?
Check exemptions, tax-inclusive pricing, line discounts, and rates before changing tax settings.
In BokepingSettings → Tax Settings → Tax Rates
Start with the invoice inputs. Changing a tax rate used by other documents can create a wider problem without explaining this invoice.
Check these in order
Section titled “Check these in order”- Confirm the customer’s details and whether Exempt from sales tax applies. Keep the exemption evidence required for the sale.
- Review which items or services are taxable and the rate selected on each line.
- Check Amounts Are: prices including tax and prices excluding tax produce different totals.
- Review line discounts. A line discount affects its tax base; the whole-invoice discount and adjustment change the total without changing the tax in the same way.
- Compare the calculated tax and total with the intended sale before sending the invoice.
Example: a price that includes tax
Section titled “Example: a price that includes tax”At an illustrative 10% rate, $100 before tax produces $10 tax and a $110 total. A $110 tax-inclusive amount contains $100 before tax and $10 tax. Selecting the wrong price mode changes what the customer pays.
The 10% rate is only an arithmetic example. Use the rate and taxability that apply to the actual sale, based on the relevant authority or your tax professional.
If tax is zero
Section titled “If tax is zero”Check customer exemption, item tax settings, and the selected rate before assuming the calculation failed. A zero-tax transaction can be intentional, but it should have a supported reason.
If the invoice was already sent or paid
Section titled “If the invoice was already sent or paid”Review its status and payment links before correcting it. Do not add a second invoice or an arbitrary fee to hide the tax difference. Agree any credit or correction with your accountant and communicate the revised document to the customer when needed.
After correcting the records, review Reports → Sales Tax Liability Summary for the relevant period. Bokeping’s records do not themselves register your business, file the return, or remit tax. See set up and review sales tax.
Related walkthrough
Section titled “Related walkthrough”The tax setup screenshot shows the rate fields. Review an existing invoice’s own line settings before changing a shared tax rate.