In Molo, we use Ceiling Rounding to calculate tax line item by line item. What that means in a practical application is that each invoice line in Molo rounds up to the next nearest penny to ensure you collect enough payment to cover your tax burden.
Below is an example breakdown of items and how their tax is calculated using a tax rate of 6.35%. Molo calculates the tax on each line item of the invoice and then adds the right most column to get a tax total.
| 6.35 tax rate | |||||
| Item | Qty | Price | Total | Tax Calculation at 6.35% | Line Tax Total |
| Item One | 1 | $15.49 | $15.49 | 0.983615 | 0.99 |
| Item Two | 1 | $44.13 | $44.13 | 2.802255 | 2.81 |
| Item Three | 1 | $8.95 | $8.95 | 0.568325 | 0.57 |
| Item Four | 2 | $2.13 | $4.26 | 0.27051 | 0.28 |
| Item Five | 3 | $7.40 | $22.20 | 1.4097 | 1.41 |
| Item Six | 1 | $2.07 | $2.07 | 0.131445 | 0.14 |
| Item Seven | 1 | $1.57 | $1.57 | 0.099695 | 0.1 |
| Total | $98.67 | $6.27 | $6.30 |