Sales types helps you to define the tax inclusion or exclusion.

From sales types settings you can define the include.

From direct invocie you can choose it from Price List drop down

Why is tax included? 

Example:
Subtotal          $10.00
Tax 7% 0.65
Amount Total  $10.00

How can I change so tax is added to the total after subtotal.

Subtotal          $10.00
Tax 7%           $0.65
Amount Total  $10.65