What's the difference between inclusive basis and exclusive basis in tax calculations?
Inclusive taxes are included in the assessable value or purchase price. For example:
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PO amount: USD 100
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Inclusive tax rate: 10%
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Tax: 100/1.10 = USD 9.09 (distribution amount divided by (1 + tax rate))
Exclusive taxes are added to the purchase price or assessable value. For example:
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PO amount: USD 100
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Exclusive tax rate: 10%
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Tax: 100*0.10 = USD 10.00 (distribution amount multiplied by tax rate)