There are two ways how to calculate the amount of tax to be paid:

**From-total**: Sum up all the items subject to taxation, and calculate tax from the total**Per-item**: Calculate tax for each item subject to taxation, and sum the individual item taxes to get the total tax amount

Since each line item on a bill can have its own tax rate, Mews calculates taxes **per item** and rounds it separately. When calculating the tax for an item, Mews first calculates the net price of that item and then applies the tax rate to get the final tax amount. You can find more information about taxation in this article:

Here you can see an example, where the Net calculation for the package is calculated as the sum of Net per item:

Net amount = (Price of item × Total %) / (Total % + Tax %)

Net calculation for the whole package: (558 * 100) / 115 = EUR 485.22

Net calculation as a sum of Nets per item: (156.22 * 3) + 18 = EUR 486.66

Calculating tax at this level—rather than calculating it from a combined total of items also guarantees that you always pay the same amount of tax for an individual item, regardless of how the revenue is distributed.