Inclusive and Exclusive Item Taxes

VunaPOS supports both inclusive and exclusive item tax calculation when ERPNext Item Tax Templates are used.

ERPNext normally treats taxes from an Item Tax Template as exclusive, meaning the tax amount is calculated and added on top of the item’s basic rate.

VunaPOS adds the Item Prices Include Tax option to the POS Profile so each POS setup can control how those item taxes should be interpreted.

Requirements

Before using item-level taxes in VunaPOS:

1. Create the required Item Tax Templates in ERPNext.
2. Assign the appropriate Item Tax Template to each item.
3. Add the relevant tax accounts and rates.
4. Open the POS Profile used by VunaPOS.
5. Decide whether the configured item prices already include tax.

Item Prices Include Tax

The Item Prices Include Tax checkbox is available on the POS Profile.

Its behavior is:

This option applies when VunaPOS processes taxes defined through Item Tax Templates.

Inclusive Taxes

Enable Item Prices Include Tax when the selling price shown for an item already contains the tax amount.

For example:

Item Rate: KES 116.00
VAT Rate: 16%

Because the tax is inclusive:

Net Amount: KES 100.00
Tax Included: KES 16.00
Grand Total: KES 116.00

The customer pays the displayed item price. The tax is extracted from that amount instead of being added again.

Configure Inclusive Taxes

1. Open POS Profile.
2. Select the profile used by VunaPOS.
3. Enable Item Prices Include Tax.
4. Save the POS Profile.
5. Confirm that the item has the correct Item Tax Template.
6. Reload VunaPOS before processing another sale.

When the item is added to the cart, VunaPOS treats the item rate as the final tax-inclusive selling price.

Exclusive Taxes

Leave Item Prices Include Tax unchecked when the item rate does not already contain tax.

For example:

Item Rate: KES 100.00
VAT Rate: 16%

Because the tax is exclusive:

Net Amount: KES 100.00
Tax Added: KES 16.00
Grand Total: KES 116.00

The tax is calculated on top of the item’s basic rate.

Configure Exclusive Taxes

1. Open POS Profile.
2. Select the profile used by VunaPOS.
3. Leave Item Prices Include Tax unchecked.
4. Save the POS Profile.
5. Confirm that the item has the correct Item Tax Template.
6. Reload VunaPOS before processing another sale.

How VunaPOS Determines Tax Behaviour

When an item has an Item Tax Template, VunaPOS checks the Item Prices Include Tax value on the active POS Profile.

If the option is checked:

• the item rate is treated as inclusive of tax
• the tax amount is extracted from the rate
• the grand total remains equal to the tax-inclusive item total

If the option is unchecked:

• the item rate is treated as exclusive of tax
• the tax amount is calculated on top of the rate
• the grand total increases by the calculated tax amount

VunaPOS uses the active POS Profile consistently throughout the sale so that item display, cart totals, checkout totals, and the submitted invoice follow the same tax treatment.

Cart and Checkout Display

The cart and checkout page show the tax breakdown returned by the backend.

For inclusive taxes, the tax may appear as:

Subtotal: KES 116.00
VAT 16% · Included: KES 16.00
Grand Total: KES 116.00

For exclusive taxes, it may appear as:

Subtotal: KES 100.00
VAT 16% · Added: KES 16.00
Grand Total: KES 116.00

The frontend displays the calculated values but does not independently calculate the official tax total.

Mixed Items

An invoice may contain several items with different Item Tax Templates.

VunaPOS applies the tax rate associated with each item while using the POS Profile setting to determine whether the item prices are inclusive or exclusive.

For example:

Item A: VAT 16%
Item B: Zero-rated
Item C: VAT 8%

When Item Prices Include Tax is enabled, applicable taxes are extracted from the item prices.

When it is disabled, applicable taxes are added on top of the item rates.

Changing the Setting

Changing Item Prices Include Tax affects how VunaPOS interprets item prices for subsequent sales.

After changing the option:

1. Save the POS Profile.
2. Reload VunaPOS.
3. Start a new sale.
4. Add a taxed item.
5. Review the cart totals before checkout.

Do not change the tax interpretation in the middle of an active sale.

Warning: The item prices and POS Profile tax setting must agree. Enabling inclusive tax for prices that exclude tax will understate the final amount. Leaving it disabled for prices that already include tax will add the tax twice.

Common Problems

Tax Is Being Added Twice

Cause

The item price already includes tax, but Item Prices Include Tax is not enabled.

Resolution

1. Open the active POS Profile.
2. Enable Item Prices Include Tax.
3. Save the profile.
4. Reload VunaPOS.
5. Start a new sale and review the totals.

Grand Total Is Lower Than Expected

Cause

Item Prices Include Tax may be enabled even though the configured item rates exclude tax.

Resolution

1. Confirm how the item prices were entered.
2. Open the active POS Profile.
3. Disable Item Prices Include Tax if the rates exclude tax.
4. Reload VunaPOS and retry the sale.

Item Tax Is Not Applied

Cause

The item may not have an Item Tax Template, or the template may not contain the expected tax account and rate.

Resolution

1. Open the Item in ERPNext.
2. Confirm the Item Tax Template assignment.
3. Review the tax account and rate.
4. Add the item to a new VunaPOS sale.
5. Confirm the tax appears in the cart.

Tax Display Differs From the Submitted Invoice

Cause

The active sale may have been created before the POS Profile or tax configuration changed.

Resolution

1. Clear or hold the current sale.
2. Reload VunaPOS.
3. Start a new sale.
4. Add the item again.
5. Confirm that the cart and checkout totals match the submitted invoice.