Our prices include 5% government tax - how to present this on invoices

Therese

When writing an invoice I would like the tax amount to show on the invoice. For example a room costs US$50, this price includes 5% government tax. If I choose a tax in the field marked tax, Wave adds 5% to the invoice total, i.e. instead of total US$50 (47.50 + 2.50 tax) the invoice shows US50 + 2.50 tax, total of US$52.50
Next problem is that for travel agents we will offer discounts. Creating and showing the discount on the invoice is well explained in Wave and is not a problem - but if the travel agent for example has a 5% discount the invoice total is 47.50 so the tax is no longer 2.50, but 2.38.
Can you please explain how to handle both cases. Thanks

JenHopf

@Therese You can't add taxes backwards that way on invoices. You would have to figure out your prices before taxes and use those on your invoices. So you would have to set your base price as... 47.62 (because 47.62*1.05=50). You would add a flat discount (which can account taxes if you want) as a separate item.