Taxes, currencies and rounding
Inclusive and exclusive taxes, compound taxes, and how each currency's minor unit decides the rounding.
BillFlow calculates every total on the server from decimal amounts, never from floating-point numbers, and rounds the way commercial documents expect: at each line, to the currency's minor unit, half up. Taxes are defined once in Settings and applied per document, per line where needed.
Defining taxes#
Under Settings › Taxes each tax has a Name, a Rate (%), a Country, whether it is Active, and a Mode:
- Exclusive taxes are added on top of the price. A ₦100 line with 7.5% VAT exclusive totals ₦107.50.
- Inclusive taxes are already inside the price. The same line with 7.5% VAT inclusive still totals ₦100; the tax line shows the part of that ₦100 that is tax.
A compound tax is charged on the base plus the taxes before it, in order; a levy on top of VAT is the usual case.
Applying taxes on a document#
In the editor's Content tab, Tax Settings switches tax on or off for the document, sets the name and rate, and chooses what it Applies to: the whole subtotal, or only the lines you tag. Tagging lets one document carry taxed and untaxed lines together. A document-level discount is taken before tax is calculated.
Currencies and rounding#
Every amount carries its currency. Most currencies round to two decimals, the Japanese yen to none, and the Kuwaiti and Bahraini dinars to three. Rounding happens at the line, so a document's total is the sum of what the customer sees on each line, not a differently rounded grand figure.
Try it
Tax and rounding calculator
Change the lines, the tax mode, the discount or the currency. Every figure comes from the product's totals engine.
| Line | Quantity | Unit price | Amount |
|---|---|---|---|
| Line 1 | ₦54,000.00 | ||
| Line 2 | ₦114,000.00 | ||
| Line 3 | ₦15,000.00 |
- Subtotal
- ₦183,000.00
- VAT (7.5%)
- ₦13,725.00
- Total
- ₦196,725.00
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