Have you ever wondered whether the tax percentage should be added to the total price of the product or added at the time of the final transaction?

There are two approaches you can take in this situation.

 You can either choose tax inclusive or tax exclusive.

Continue reading to learn more about each of the approaches, including how to calculate them, and more!

All taxes can be divided into three categories: taxes on earnings, taxes on purchases, and taxes on possessions.

 Let's take a closer look at each category!

You must pay income tax regardless of your revenue sources. 

To put it another way, the tax is deducted directly from your salary. The amount of tax levied varies considerably between jurisdictions and can be significantly influenced by your income.

Income tax can be considered one of the biggest sources of tax revenue. It is employed by the federal government, state government, or other local authorities.

When buying the majority of goods or services, customers are responsible for paying the sales tax.

 Most purchases are subject to sales tax,although some countries exempt groceries from this practice.

Although it may not be enjoyable for a consumer to pay more money, the sales tax contributes to local revenue that supports essential services like education, transportation, and health care.

Property tax is applied to both moveable and immovable assets, such as buildings, lands, cars, and other machinery. 

The entity in charge of the area where the property is located determines the tax amount.

Property taxes are correlated with local tax income and contribute to everything from park construction to public safety.

A tax amount that is included in the purchase price is known as being tax inclusive. 

As an illustration, if an item costs $50 and the tax is 5%, the ultimate price of the item would be $52.5, which would include the original price plus the tax.

You can use the following two tax inclusive formulas to determine the final price:

Tax amount = Gross amount - amount without tax

Let's assume that the gross amount is $100 and that the tax is 20%. The calculation then looks like this:

100 (gross) - 83.33 (net) = 16.67 (tax amount).

Both clients and product suppliers can benefit from tax inclusive pricing. They will be aware of the expected amounts payable and received. 

Calculations are also made simpler when both parties are aware of the final price, tax included.

When dealing with short transactions using cash payment methods, tax inclusive is also desirable. Instead of waiting until the final transaction to know the total, a merchant can set tax-inclusive prices for their products and provide a flat rate per unit amount much more easily.

When using a tax exclusive approach, the tax is calculated at the time of the final transaction.

 Therefore, if the service or product provider charges $50, for instance, it follows that you will also need to pay the tax. For example, you must add $5 more to your payment if the tax is 10%.

You can use the following formula to determine the tax-exclusive amount:

Tax inclusive price / (1 + tax rate) = Tax exclusive price

As you can see, the only elements you need are the price of the product, the tax percentage, and potentially the quantity to easily compute the final price.

Tax exclusive rates may be preferred by business owners who do not want to include tax in the price of their products or services.

 This approach also provides a more detailed accounting of costs when creating an invo

Keep in mind that customers may want a clear indication that tax is not included so they will be prepared for a higher price at the time of purchase.

Now that you know the tax inclusive definition and how to calculate it, let’s compare it with tax exclusive and see what some of the major differences between the two are.

Tax inclusive rates will always include tax in the total price, but with tax exclusive pricing, the tax will be added at the point of purchase.

The tax inclusive rate will always be higher than the tax exclusive rate, and as the sums rise, the discrepancy will widen.

Remember that the tax rate will rise along with an increase in the value of a product or a service.

It should come as no surprise that taxes play a significant role in invoicing, given how significant a portion of income they represent. Any sort of invoice, including standard invoices, freelance invoices, small business invoices, and others, must include taxes. The accounting procedure will only become simpler.

 if you are concerned about producing an invoice correctly. With it, you’ll be able to 

make an invoice according to your preferences without wasting your precious time

Although it might seem a difficult concept to grasp at first, tax inclusive is actually easy to understand as you can see. Hopefully, this article has painted a clear picture of what it is, how to calculate it, and why it’s important!

Whether you opt for tax inclusive or exclusive, there’s no way around taxes. And where there are taxes, there’s also paperwork.

If you need help making important documents such as invoices, 

, etc., we’ve got your back! We’ll make these and other documents for you in no time!

There are three different categories of taxation: property tax, sales tax, and income tax.

Tax inclusive is an indication that the entire sum includes both the product price and the applicable tax.

On the other hand, a tax exclusive offer only displays the product price, with the tax amount to be added at the time of the final transaction.

Tax calculation is a crucial component of accurate invoicing. Using an online invoice generator is the most effective approach to making any type of invoice.

Read this easy-to-follow article and learn more about tax inclusive, including how it is calculated and how it differs from tax exclusive.

Everything You Need to Know About Tax Inclusive

Is receiving a tax refund a good thing or a bad thing?

Refunds mean getting your money back, hence the favorable reaction often associated with them. 

Contrastingly, when it comes to taxes, it may not always be something to celebrate.

Confused? Don’t be! This article will help you learn more about the tax refund, how it works, the pros and cons that come with it, and more!

A tax refund is a type of remuneration resulting from overpaid federal or state income taxes.

 Reimbursing taxpayers often takes place because an excess amount is withheld from their salaries by their employers.

Refunds in taxes are sent to the taxpayer as a c

heck or as a direct deposit to their account

. For taxpayers, receiving tax refunds gives them an extra boost to cover a good chunk of their expenses.

These expenses include paying off student loans, credit card debt, or retirement savings.

In reality, tax refunds are considered interest-free loans

 taxpayers make to the government. While it may present financial leeway for taxpayers, it also underscores a prevalent habit of mismanaging finances.

Tax refunds are usually sent to the taxpayer a couple of 

weeks after their annual tax returns have been filed

Annual tax returns provide substantial information on how much taxes you owe, along with any refunds you may be entitled to. Keep in mind that the timeline for receiving tax returns will vary depending on how you file your tax returns.

Some taxpayers who qualify for a tax refund use the reimbursed amount to purchase 

, safe and non-marketable investments that merge fluctuating inflation rates with fixed interest rates.

Savings I Bonds have a guaranteed return rate of up to 6.89%, making it a viable choice if you want to maximize how you use your refundable tax credits.

Refundable tax credits refer to credits reimbursed to taxpayers, 

regardless of any existing tax liabilities

The different types of refundable taxes are as follows:

The Child Tax Credit (CTC) is a tax credit meant to support parents or guardians with 17 year old or younger dependents.

Under the CTC, eligible parents earning $400,000 or less on modified adjusted gross income (for married people filing jointly) or $200,000 (for single filers or heads of household) are to receive up to $2,000 worth of credit per qualifying dependent.

Parents may claim their CTC by filing their 

. The IRS typically releases the Child Tax Credit in mid-February. Early filers can expect updates on their CTCs around February 18 and February 28.

 is designed to compensate for the earnings of low-wage workers. 

Using a dollar-for-dollar basis, the EITC effectively reduces the tax owed by low-income workers and minimizes the impact of Social Security taxes on their gross earnings.

Dubbed a “work bonus plan,” EITC’s qualifications are reserved only for low to moderate earners. For the 2023 tax year, the tax credit ranges from $600 to $7,430, depending on the worker’s filing status and the number of dependents.

If a worker does not have children or dependents and plans to file an EITC claim, they must be aged anywhere between 25 and 65 years old to qualify.

#3. American Opportunity Tax Credit (AOTC)

The American Opportunity Tax Credit (AOTC)

 benefits students enrolled in higher education.

 It aids in covering educational expenses for the first four years of their academic careers. According to the IRS, eligible students can claim a maximum of $2,500 for AOTC.

Students who want to qualify for the AOTC must not have completed the initial four years of higher education at the start of the tax year. They must also pursue a degree or any other accepted scholarly credential.

 from a qualified academic institution to claim their AOTC.

 helps reduce the costs of insurance premiums for taxpayers who signed up for health coverage through the Health Insurance Marketplace.

Credit amounts under the PTC depend on the taxpayer’s household information and estimated gross income. In addition, the IRS assesses the taxpayer’s household size to check whether their income falls anywhere between 100% and 400% of the federal poverty line.

If a taxpayer wants to qualify for the Premium Tax Credit, they are not allowed to qualify for any other health care plan, especially through their employer or the government. Only health coverage acquired through the Health Insurance Marketplace is accepted under PTC.

Tax refunds come with advantages and drawbacks.

 With the prices of basic commodities increasing due to inflation, it can be challenging to cut costs consistently. Tax refunds can serve as an added monetary resource that you can add to your savings.

In case there is an emergency, your refundable tax gives extra cash that you can use to cover any unforeseen expenses. You can also use your tax refund to pay off debts.

 You get refunds in your taxes because you paid them excessively. This could also mean that your employer is overwithholding a percentage of your gross income. Thus, you tend to receive less on your net income.

 By continuously committing errors in calculating your taxes owed, you are causing a domino effect of imbalance in your expenditures. It is better to pay the right amount of taxes so you can receive a higher salary and not worry about any discrepancies with your taxes later on.

File your annual federal income tax return to get a tax refund.

Aside from the aforementioned forms, you must also 

. Your filing status and the percentage you spend on household expenses directly influence how much you will receive in your tax refunds.

Tax refunds are available in as little as 21 days

, provided that the IRS does not encounter any errors or discrepancies in your annual tax return. However, if there are inconsistencies, you can expect a longer waiting time before receiving your refund.

You have two options on how to claim your tax refund: One is to 

request a paper-based check through the mail

. Another option is to have your refundable tax 

deposited directly into your bank account

It takes a maximum of eight weeks to receive tax refunds if you file tax returns on paper. In contrast, electronically filed tax returns will take 3 to 12 weeks.

If it takes longer than eight or 12 weeks before you receive your tax refund, there may also be other factors you need to consider, such as:

 Earned Income Tax Credit (EITC) takes longer to process because it has been notorious for countless questionable filings. Hence, the law mandates the IRS to keep hold of refund requests until March.

Errors in calculating or filing tax returns.

 The IRS might have to verify some information to assess whether you qualify for a refund.

How to Check the Status of Your Tax Refund

The IRS offers online tools that help you track and check the status of your tax refund. 

These tools are the IRS2Go mobile app and the Where’s My Refund tool.

 is the IRS’s mobile app that allows users to check their refund status, send direct bank account payments and debit and credit card payments to pay for taxes, and access the tax software for free.

 assists taxpayers in checking the status of their income tax refund.

It is crucial to be extra careful when settling your taxes.

 Although tax refunds provide some advantages, they may potentially leave you with additional responsibilities and unwanted financial burdens in the long run.

Ensure that you fill out your Form W-2 correctly, provide the correct filing status, and use available tax calculating tools to estimate your withholding tax rates more accurately.

Lastly, coordinate with your employer to see whether the correct percentage is being withheld from your gross income. Who knows, you might not be reaping the fruits of your well-deserved net income fully simply because your employer holds more than the necessary amount from your gross paycheck to settle your taxes.

A tax refund is a refundable credit that is given to taxpayers who have paid an excess amount in their withholding tax.

Taxpayers must file their annual income tax return and submit their Form W-2, 1099, and 1099-INT forms to get their tax refund.

Refundable tax credits are adjusted payouts or credits to taxpayers that are not influenced by any existing tax liability.

Examples of refundable tax credits include Child Tax Credit, Earned Income Tax Credit, American Opportunity Tax Credit, and Premium Tax Credit.

The IRS offers tools such as the IRS2Go mobile app and the Where’s My Refund tool to monitor the status of tax refunds.

Read this article and learn how to qualify for a tax refund, a reimbursement given to taxpayers who have overpaid their income taxes.

What is a Tax Refund, How it Works, and How to Get It [2023]

If you’re a business owner who plans to export your goods to a buyer in another country, you will need to provide a legal document that will serve as proof of agreement between you and the carrier

. For this, you will have to use a shipping invoice.

A shipping invoice is a document that goes by many names and is primarily used by sellers who send their shipments overseas. But why is this document so important, and how do you make one?

In this article, we’ll tell you everything you need to know about shipping invoices and show you how to create them effortlessly using an 

A shipping invoice serves as a binding contract and an agreement between you, the shipper, and the freight carrier.

 Also known as a "bill of lading," "trucking invoice," or "freight invoice," this legal document outlines the details of a shipment, such as:

This invoice must be shipped along with the goods sold so that both the shipper and the person receiving the shipment can sign it.

It’s most commonly used in international trade, and it can also be used as a shipping receipt once the goods reach their final destination. 

Essentially, a shipping invoice serves as evidence that the items sent by the seller have been transferred in good condition.

What is the Difference Between a Commercial and a Shipping Invoice?

People often mistake a shipping invoice for a commercial invoice, as the two documents are quite similar. 

Still, in fact, they are completely different

Firstly, a shipping invoice can function as a title of ownership because the responsibility for the products shipped is transferred to the carrier while in transit. Once the buyer receives the products, ownership of the shipment is transferred to them.

On the other hand, a commercial invoice can serve as proof of sale and agreement between two parties, but it cannot function as a title of ownership

Secondly, a commercial, or a business invoice, is required to identify the products being sent. This way, the customs officers can determine the shipment’s worth 

based on the taxes and other rates applied

doesn’t specify any taxes or any other duties applied

If you want to avoid any issues with your shipment, your invoice needs to include all the necessary information

. Here’s a breakdown of everything you must include in your shipping invoice:

#1. Shipper and Receiver’s Contact Information

The first section of your shipping invoice needs to clearly display your contact information, such as your full name, phone number, business address, email address, and a website (if you have one).

You also need to precisely enter the receiver’s contact details, including their name, phone number, address, etc.

When filling out this section of your shipping invoice, make sure to double-check everything. 

Your contact information needs to be correct, as the other parties may need to get in touch with you if there seems to be an issue with your shipment

#2. Date, Invoice Number, and a Reference Number

To avoid delayed shipments and any difficulties with 

, make sure to include a date and a unique invoice number in your document.

Properly numbering your invoices can help you keep track of them, which can make the annual filing of taxes and filling out the W-2 form much easier

But, most importantly, you need to enter the purchase order number or a reference number. These numbers are necessary for record-keeping purposes and for releasing the shipment for pickup or delivery.

In this section, you need to include any particular instructions and notes about your shipment for the carrier

. You can specify whether the shipment will be subject to a special designation depending on its contents.

For example, if you’re sending hazardous materials, you need to specify that they’re hazardous so that the shipment will be handled with care.

You must also choose the manner in which your goods will be shipped, such as sea, air, or land transportation.

#4. Descriptions of Goods and Pick up-Date

Next, you must describe the items that have been shipped in detail and state:

Type of container (e.g., box, envelope, etc.)

Also, don’t forget to include the overall net and gross quantities of the shipped items and the pick-up date

Once you provide a breakdown of your goods, you need to specify 

In the “Additional notes” section, you can include 

any additional charges that your customers need to pay

, such as service pricing, export transit, shipping services, etc.

You can also include a “thank you” note to maintain a friendly tone.

Now that you know what to include in your shipping invoice, you’re probably wondering how to make this important document

. You can either create it from scratch on your own using tools such as Microsoft Word or Excel, which can be quite difficult and time-consuming, or use an online invoice generator.

Using an online generator is considered a much easier and more efficient method, as it only requires you to

Fill out the required information in an invoice template

Once you’re done, you’ll instantly be able to print out your invoice so you can send it along with your shipment or forward it to the buyer of your goods via email.

Besides being an easier method of creating an invoice, you should use an invoice generator because it

. Instead of wasting time manually creating your shipping invoice from scratch, you’ll only need to fill out the empty fields in the template. On top of that, you can reuse the template for different clients.

. An invoice generator will provide you with a template that’s designed according to your preferences and has a professional look to it. This will ensure your clients know you mean business, and you’ll be more likely to stand out from the rest of your competition.

. By using an invoice generator, you will get a digital copy of this important document. This means that you’ll be able to store your invoices safely on a cloud, where you can access them at all times. To top it all off, your documents will be safe from any natural disasters and cyber threats.

Besides the shipping invoice, here are some other invoice types you can create with an online generator

At the end of the day, if you plan on shipping your goods to a buyer from another country, you will need a shipping invoice

. You’ll be able to use the document instead of a shipping receipt, and on top of that, it can act as proof of sale.

If you don’t want to waste any time creating your shipping invoice from scratch, feel free to use our online generator. We’ll provide you with a personalized invoice template that is easy to fill out and can be used for multiple different clients!

A shipping invoice is a legal document that outlines the details of the shipment and serves as a binding contract between you and the carrier.

The biggest difference between a shipping and a commercial invoice is that the latter can’t be used as proof of sale, while the former can.

Typically, a shipping invoice should include the shipper and receiver’s contact information, reference numbers, shipment instructions, and a description and price of the shipped goods.

Although you can make a shipping invoice manually from scratch, the best way to go about it is to use an online invoice generator.

A shipping invoice is a must-have legal document when exporting your goods. Use our invoice generator to create it with zero hassle!

What is a Shipping Invoice and How to Create One [2023]

Working as a consultant is an ideal career if you are someone who possesses years of expertise in a particular field. But, on the other hand, things can become tricky once you start preparing a consultant invoice that accurately reflects your billable hours to your clients.

As a consultant, people flock to you because they can depend on your extensive knowledge and background. Therefore, 

you need to ensure your invoice is consistent with your proposed rates.

If you’re new to the trade and looking for a guide to creating an invoice for your services, you’ve come to the right place!

Read on to learn about consultant invoices and how to create them in a snap with an online generator!

A consultant invoice is a document that enumerates all the services and the corresponding rates provided by a consultant or a consultancy firm. 

It is a breakdown of the billable hours and quantity of service rendered that the client has to pay.

Providing consulting invoices likewise aids in ensuring payments are fulfilled promptly.

 usually does the trick. However, the use of an invoice template is great for freelancers or startup consultancies since it already has the essential details outlined for them.

But if you’ve been in the business for a while, there’s no harm in using one too! After all, you could find pointers that prove useful in enhancing your existing invoicing processes.

With an invoice template, all you need to do is fill in the boxes with the necessary information, and your invoice is ready to send before you know it.

What Should be Included in a Consultant Invoice

Moving on, the following is the must-have information to include in your invoice:

your invoice must bear your name or the name of your business

, such as your phone number, email address, and business address.

Similarly, the same information about your client must be reflected since they are the invoice recipient. You need to specify their name, address, phone number, and email.

Providing your basic information shows your authenticity as a business or service provider. Also, your client will know how to reach you if they have anything to clarify with the invoice.

Pro-tip: If your agency has a logo, make sure to include it at the top of your invoice. It will help your customers recognize that you sent the invoice.

What is a consultant invoice? Discover invoicing best practices and the benefits of using an invoice template for your consultant services.

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What is a Shipping Invoice and How to Create One [2023]

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