How does the tax differ between a tax-exclusive and tax-inclusive invoice?

Solution/Answer/Relevant Steps 
Solution 1-:
Tax-Exclusive Invoice:
A tax-exclusive invoice is one where the tax amount is added on top of the base price of the goods or services. The tax is calculated separately and displayed as an additional line item on the invoice.
Step 1:
Identify Base Price: Determine the price of the goods or services before tax. This is the base price that will be used to calculate the tax amount.
Step 2 :
Calculate Tax: Determine the applicable tax rate for the specific goods or services being invoiced. Multiply the base price by the tax rate to calculate the tax amount.
Step 3 :
Display Tax Separately: On the invoice, list the base price as one line item and the calculated tax amount as a separate line item. Step 4 :
Total Amount: Add the base price and the tax amount to get the total invoice amount. This is the amount that the customer needs to pay.
Solution 2: -
Tax-Inclusive Invoice:
A tax-inclusive invoice is one where the tax is already included in the listed price of the goods or services. The total amount paid by the customer covers both the base price and the tax.
Step 1 :
Identify Tax-Inclusive Price: The price listed on the invoice already includes the tax. This is the amount that the customer will pay.Select the sale type Tax Inclusive
Step 2 :
Calculate Base Price: To find out the base price before tax, divide the listed price by (1 + tax rate as a decimal). This will reverse-calculate the base price.
Step 3 :
Tax Amount: The tax amount can be calculated by subtracting the base price from the listed price on the invoice.
Step 4 :
Transparency: While the tax is not listed separately on the invoice, it's still important to indicate that the price includes tax. Mention this clearly on the invoice to avoid confusion.
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