Inclusive/Exclusive of sales tax

This refers to the price of the product or service.

Note: If you have not assigned a tax code to your product or service, you need to assign the applicable tax code to each transaction line on your form.

Exclusive of sales tax

This is the most common situation.

The price or cost of items shown in the Amount column does not include sales tax (net price).

Only the total amount includes sales tax; line and subtotal amounts do not. The sales tax amount is shown as a separate amount at the bottom of the form and is not included in the subtotal.

Inclusive of sales tax

The price or cost of items shown in the Amount column includes sales tax (gross price).

Sales tax is included in each of the amounts (line, subtotal, and total) of the sales form. The total amount of sales tax is also shown at the bottom of the form.

Out of scope of sales tax

Items are not subject to sales tax.