> ## Documentation Index
> Fetch the complete documentation index at: https://docs.filexpress.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Taxes on Products

> Tax treatment per product: taxed, exempt, not subject and dynamic taxes by list

Each product has its tax treatment configured. This setting determines how taxes are calculated and reported when the product is included in a sale.

## Tax treatment (`tax_method`)

| Type | Code | In the sale summary |
| - | - | - |
| **Taxed** | `is_taxed` | Taxed sales + calculated tax amount |
| **Exempt** | `is_exent` | Exempt sales, no tax charged to the customer |
| **Not Subject** | `is_not_subject` | Reported as not-subject sales in the tax books |

## Dynamic taxes (tax list)

When a product is marked as **Taxed**, one or more taxes are assigned to it from the tax list configured in the company.

When `is_taxed` is selected, the system automatically assigns **VAT (IVA) (code 20, 13%)** as the default tax. Additional taxes can be added per product.

### Available tax types

> [card] Percentage (%)
>
> The tax is a percentage of the base price.\
> The system adds up all the assigned percentages and applies them to `price_before_taxes`.\
> Example: VAT 13% on $10.00 = $1.30 → consumer price \$11.30.

> [card] Fixed amount per unit
>
> Fixed value per unit sold, regardless of the price.\
> Example: \$0.20 per bottle — added to the base price plus percentages.\
> Useful for specific taxes (alcoholic beverages, fuels, etc.).

### Consumer price formula

```
precio_venta = price_before_taxes × (1 + Σ % de impuestos) + Σ montos fijos
```

Example with two taxes — VAT 13% and an additional 2% rate + \$0.10 fixed:

```
price_before_taxes = $10.00
precio_venta = $10.00 × 1.15 + $0.10 = $11.60
```

## Taxes by country

Taxes belong to a **country**: the VAT and withholdings applied to a sale are those of the branch that issues it (for example, Guatemala's VAT is 12%). Before issuing, the system validates that each tax on the document corresponds to the branch's country and has the correct effect (adds or withholds); if it does not match, it rejects the document with a clear message. There is no longer a fixed 13% for all countries.

## Multiple taxes

A product can have several taxes assigned at the same time. The system adds them up automatically:

* Percentages are added and applied together on the base price.
* Fixed amounts are added and appended to the result.

## Relationship with exempt customers

If the customer is marked as `is_exent`, the system reverses the formula to obtain the base price without VAT, regardless of the taxes assigned to the product:

```
precio_para_cliente_exento = price_before_taxes
```

The customer pays the price without tax, even if the product has VAT configured.

## Breakdown on the sale

At the bottom of each sale, the system shows the full detail:

* Taxed subtotal
* Exempt subtotal
* Not-subject subtotal
* Total taxes (broken down by each tax)
* **Total to pay**


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