{"id":143511,"date":"2026-08-24T10:42:13","date_gmt":"2026-08-24T10:42:13","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d8%a7%d9%84%d9%8a%d8%a9-%d8%a7%d8%ad%d8%aa%d8%b3%d8%a7%d8%a8-%d8%a7%d9%84%d9%85%d8%a8%d9%84%d8%ba-%d9%88%d8%a7%d9%84%d8%b6%d8%b1%d8%a7%d8%a6%d8%a8-%d9%81%d9%8a-%d8%a7%d9%84%d9%85%d8%b5%d8%b1%d9%88\/"},"modified":"2026-08-30T08:43:18","modified_gmt":"2026-08-30T08:43:18","slug":"expense-amount-and-tax-calculation","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/expense-amount-and-tax-calculation\/","title":{"rendered":"Expense Amount and Tax Calculation"},"content":{"rendered":"<div dir=\"ltr\" lang=\"en\">\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The system clearly separates the base amount you enter when creating an expense from the automatically calculated tax value, so the amount you entered stays unchanged, while its related taxes are calculated separately and clearly. This guide explains this calculation logic in detail.<\/p>\n<h3 dir=\"rtl\" style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\"><\/h3>\n<h2 id=\"key_fields_in_the_expense_form\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Key Fields in the Expense Form<\/h2>\n<ul dir=\"ltr\" style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Amount:<\/strong> The field you enter manually \u2014 it\u2019s editable, and is used as the reference for calculating all taxes related to the expense.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Tax:<\/strong> A read-only field, automatically calculated based on the selected taxes.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Total with tax:<\/strong> Equals the Base Amount plus any exclusive (non-included) taxes.<\/li>\n<\/ul>\n<h2 id=\"how_is_inclusive_tax_calculated?\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">How Is Inclusive Tax Calculated?<\/h2>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">When you select a tax of type \u201c<strong style=\"color: #111827;\">Inclusive<\/strong>,\u201d it means the tax value is already included within the base amount you entered, and is not added on top of it. It\u2019s calculated using the following formula:<\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Tax Amount = Base Amount \u00d7 Rate \u00f7 (100 + Rate)<\/strong><\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">In this case, the \u201c<strong style=\"color: #111827;\">Total Due<\/strong>\u201d remains equal to the base amount itself, with no increase.<\/p>\n<h2 id=\"how_is_exclusive_tax_calculated?\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">How Is Exclusive Tax Calculated?<\/h2>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">When you select a tax of type \u201c<strong style=\"color: #111827;\">Exclusive<\/strong>,\u201d it means the tax value is added on top of the base amount. It\u2019s calculated using the following formula:<\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Tax Amount = Base Amount \u00d7 Rate \u00f7 100<\/strong><\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Total Due = Base Amount + Tax Amount<\/strong><\/p>\n<h2 id=\"important_rule:_each_tax_is_calculated_independently\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Important Rule: Each Tax Is Calculated Independently<\/h2>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">When more than one tax is applied to the same expense, each tax is calculated separately based on the original <strong style=\"color: #111827;\">\u201cAmount\u201d<\/strong> only \u2014 not on the result of another tax added earlier. This ensures calculation accuracy regardless of how many taxes are applied or in what order.<\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Example<\/strong><\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">If you enter a base amount of <strong style=\"color: #111827;\">500<\/strong>, with the following two taxes applied:<\/p>\n<ul dir=\"ltr\" style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Tax 1:<\/strong> 5% Inclusive.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Tax 2:<\/strong> 10% Exclusive.<\/li>\n<\/ul>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The results would be as follows:<\/p>\n<div dir=\"ltr\" style=\"margin: 0 0 18px; line-height: 1.9; font-size: 16px; color: #1f2430;\">\n<table style=\"width: 100%; border-collapse: collapse; margin: 0 0 18px;\">\n<thead>\n<tr>\n<th scope=\"col\" style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Item<\/th>\n<th scope=\"col\" style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; background: #f6f8fb; font-weight: bold;\">Value<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Base Amount<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">500<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Tax 1 (Inclusive)<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">23.81<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Tax 2 (Exclusive)<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">50.00<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Total Calculated VAT<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">73.81<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">Total Due<\/td>\n<td style=\"border: 1px solid #e5e7eb; padding: 10px 12px; text-align: left; vertical-align: top;\">550.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Instant Calculation Updates<\/strong><\/p>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">All values (Calculated VAT and Total Due) update instantly and automatically as soon as you change the base amount or adjust the applied tax settings, with no additional action needed on your part.<\/p>\n<h2 id=\"note_for_scanned_e-invoicing_(sar)_expenses\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">Note for Scanned E-Invoicing (SAR) Expenses<\/h2>\n<p dir=\"ltr\" style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">If an expense is scanned using the \u201c<strong style=\"color: #111827;\">Scan Expense Using AI<\/strong>\u201d feature on a Saudi account, and the system is unable to automatically determine the applied tax type from the scanned receipt, it takes the total amount only and leaves the tax field empty, so you can update it manually later with the correct tax.<\/p>\n<\/div>\n","protected":false},"author":23,"featured_media":0,"template":"","categories":[5202],"tags":[13297,13301,13298,13299,13303,13304,13302,13300,13275,13278,13279,13281],"class_list":["post-143511","tutorial","type-tutorial","status-publish","hentry","category-fast-expense-recording","tag-base-amount-and-calculated-vat-en","tag-calculating-multiple-taxes-on-the-same-expense-en","tag-difference-between-inclusive-and-exclusive-tax-en","tag-how-is-tax-calculated-in-an-expense-en","tag-scanned-expense-without-tax-en","tag-tax-calculation-logic-en","tag-total-due-after-tax-en","tag-why-doesnt-the-amount-i-entered-change-en","tag----en","tag-----en","tag--------en","tag------en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Expense Amount and Tax Calculation - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/tutorial\/expense-amount-and-tax-calculation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Expense Amount and Tax Calculation - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"The system clearly separates the base amount you enter when creating an expense from the automatically calculated tax value, so the amount you entered stays unchanged, while its related taxes are calculated separately and clearly. 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