## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-de/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How is the tax amount calculated when tax preferences are set as tax inclusive?

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When you choose the item rates to be **Tax Inclusive** from the **General** preferences under _Settings_, the tax amount is calculated as follows:

**Tax Amount** = Price inclusive of tax \* Tax rate ÷ (100 + Tax rate)

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