It is possible to create invoices with the total amounts inclusive of VAT.
However, in order to arrive at the correct total price (including VAT), you need to first deduct the VAT from the price of the product or service before applying the correct VAT%, which will bring you to the correct total price including the tax.
To find the net amount before VAT, you should divide the gross amount by 1 + VAT percentage (i.e. if it is 20%, then you should divide by 1.20)
For example, to have an amount of 1,000 inclusive of VAT, Take 1000 â 1.2 = 833.33333. Enter this as the unit price as 833.33.
Please follow the steps below:
- Select âInvoicesâ in the left-hand menu
- Select âNew Invoiceâ
- 'Add a product or service' to your invoice
- Click on 'VAT%' and select the correct VAT % that applies to your invoice
- Enter the 'Price' and the VAT will be automatically calculated
- Select âDoneâ