My prices already include VAT, so why is the quote total higher than my price?
Because the tool treats every unit price as before tax and adds the rate you enter on top. Type 115 when it already includes 15% and the total becomes 132.25, charging the client tax twice. The fix is to take the net price out first (115 becomes 100) and enter that, so the quote shows 100, then 15 tax, then a total of 115.
What happened, in figures
Entering the inclusive price of 115 with a 15% rate: tax 17.25, total 132.25. Wrong.
Entering the net price of 100 with a 15% rate: tax 15.00, total 115.00. Right.
3 pieces at an inclusive 230: entered as is, the total is 793.50; with the net price of 200 it becomes 690.00, exactly 3 × 230.
The mistake is common among sellers whose online store shows tax-inclusive prices, who then copy the same prices into a quote for a business client.
The right way: get the net price first
- Open the VAT calculator and choose ‘Extract tax from a gross amount’, at the rate that applies to you.
- Type the inclusive price, such as 99, and it gives you the net 86.09 and tax 12.91.
- In the Quotation generator, enter the net figure as the unit price and the same rate in the tax field.
- Check that the total matches what the client actually pays at your inclusive prices.
The quantity trap: a few halalas after conversion
When an inclusive price does not divide cleanly by 1.15, a small gap appears with quantities. An inclusive 99 becomes 86.09 net after rounding. For one piece the total is exactly 99.00, but for seven pieces the line is 602.63, tax 90.39 and the total 693.02, while 7 × 99 = 693.
To remove the gap, type the net price more precisely: the tool reads up to six decimal places, so entering 86.086957 gives a line of 602.61, tax 90.39 and a total of exactly 693.00. The cost is that the unit price prints in the table with all those decimals, so choose between a readable unit price and a matching total depending on what matters more to your client.
Alternative: leave the tax field empty
If your client does not need the tax shown separately, you can enter your inclusive prices as they are and leave the tax field empty. No tax row appears and the total in the first example is 115.00. Add ‘Prices include VAT’ in the notes. Be aware that the client then cannot see the tax amount, and their purchasing team may ask you for the breakdown. The tool calculates what you enter; it does not decide what you are required to show.
Common questions
Can I tell the tool that my prices include tax?
No, there is no such option. Prices are always treated as before tax.
Does a discount change this?
The discount comes off before tax, so convert inclusive prices first, then apply the discount in the tool.
Why not just divide by 1.15 myself?
You can, but the VAT calculator gives you the net and the tax already rounded to the halala, which means fewer mistakes.
