Tax-Inclusive vs Tax-Exclusive Pricing

Should your invoice show a price with tax already included, or add tax on top? Here’s the difference and when each is used.

Tax-inclusive price

Tax term

A tax-inclusive price already contains the applicable tax. The invoice may still need to disclose the tax or indicate that it is included.

Tax-exclusive price

Tax term

A tax-exclusive price does not include the applicable tax. GST/HST, QST, PST, or RST is added to the stated price.

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