Adding VAT to your invoices
Add VAT to invoices if you're VAT registered.
Who needs to add VAT?
You should add VAT to your invoices if:
- Your business is VAT registered
- Your taxable turnover exceeds £85,000/year
- You've voluntarily registered for VAT
If you're not VAT registered, you don't need to charge VAT on your invoices.
How to add VAT
- Open the Create Invoice dialog for a client
- Look for the Tax & VAT section
- Check "Include VAT on this invoice"
- Select your VAT rate from the dropdown
Available VAT rates
RemindToPay supports UK VAT rates:
| Rate | Name | When to use |
|---|---|---|
| 0% | Exempt | Zero-rated goods/services |
| 5% | Reduced | Children's car seats, energy-saving materials |
| 20% | Standard | Most services (default) |
Most service providers use the 20% standard rate.
Automatic VAT calculation
When VAT is enabled, RemindToPay automatically calculates:
| Subtotal | VAT Rate | VAT Amount | Total |
|---|---|---|---|
| £100.00 | 20% | £20.00 | £120.00 |
| £200.00 | 5% | £10.00 | £210.00 |
| £150.00 | 0% | £0.00 | £150.00 |
The totals section shows the subtotal, VAT amount, and total clearly.
VAT on your PDF invoice
When VAT is enabled, your invoice PDF shows:
- Subtotal (before VAT)
- VAT with the percentage rate
- Total (inc. VAT)
This makes it clear to your clients how much VAT they're paying.
Setting your VAT number
To display your VAT registration number on invoices:
- Go to Settings → Business Details
- Enter your VAT Registration Number
- Save changes
Your VAT number will appear on all invoices you create.
FAQs
Do I need to add VAT to every invoice?
Only if you're VAT registered. You choose whether to include VAT each time you create an invoice.
Can I set a default VAT rate?
Currently, you select the VAT rate per invoice. Default settings are coming soon.
What if I charge different rates to different clients?
Select the appropriate rate when creating each invoice. The rate is saved with that invoice.
How do I invoice non-UK clients?
For B2B exports outside the UK, you may need to use 0% VAT. Consult your accountant for specific advice on cross-border transactions.
Where can I learn more about UK VAT?
Visit HMRC's VAT guidance for official information on VAT rates and registration.
Related: Creating invoices · Understanding fees
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