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  5. How are Taxes Calculated on Invoices/Estimates?
  1. Home
  2. Knowledge Base
  3. Invoices
  4. How are Taxes Calculated on Invoices/Estimates?

How are Taxes Calculated on Invoices/Estimates?

On Avaza Invoices/Estimates, the tax is applied at the line-item level and then rounded because you can have different tax types for each line item.

This approach is consistent with other leading invoicing platforms. We round the tax amount to two decimal places.

The Tax sub-total is thus the total of all Tax amounts per line-item.

Here is a mathematical example of this rounding at work. Please note, we do not display the tax for each line item at the line item level. The figure below is for explanatory purposes only. 

Line Item Amount Tax Rate Tax Amount Line Item Tax with Rounding
125 8% 10 10
167 2% 3.34 3.34
235 14.45% 33.9575 33.96
Updated on January 21, 2023

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