The goal: clarity for your customer
Your document should answer: is tax included, what rate applies, and what the total is.
Quick definitions (high-level)
- **Sales tax (US)**: typically added at checkout; may depend on location and nexus rules.
- **VAT (EU/UK)**: value-added tax; often shown as a separate line item; reverse charge may apply for B2B.
- **GST**: similar concept used in several regions.
What to show on the document
- **Tax included**: Yes/No
- **Tax rate (%)**: e.g. 0, 5, 20
- **Tax amount** and **Total**
Practical tip for SMBs
If you’re unsure, start with **0%** and add a note like "Tax may apply". For scale, use a merchant‑of‑record to handle tax calculation.