Tax Exclusive Pricing
Also called: exclusive of tax, plus GST
What is Tax Exclusive Pricing?
Tax exclusive pricing quotes the base price and adds GST as a separate line at billing, so the customer pays more than the listed figure. It is the norm in B2B trade, wholesale and professional services.
Why Tax Exclusive Pricing matters
Business customers prefer exclusive quotes because they reclaim the tax as credit and compare suppliers on the base price. Quoting exclusive to a consumer, though, usually reads as a hidden charge.
Tax Exclusive Pricing formula
Invoice total = Base price + (Base price × GST rate ÷ 100)
The base price is the taxable value reported in your returns.
How Tax Exclusive Pricing works in practice
Say which basis a quotation uses, in words, on the document. Most disputes over quotations come down to one side reading a number as inclusive and the other as exclusive.
Frequently asked questions
Consumer-facing sales usually work better inclusive; B2B quotes are conventionally exclusive.