If you’ve ever wondered whether you can include your products or services with differing VAT rates, all on the same invoice without undue confusion or complex calculations, the simple answer is: yes, you can.
This might seem like a trivial detail. But different VAT rates for different items in the same invoice can cause a bit of a headache for those whose businesses deal in these types of products or services.
But there is a solution.
Invoice templates with VAT selection
When you’re dealing with products or services that have different rates, creating invoices using the reliable fallbacks Word or Excel invoice templates, you might soon discover that these are not, well, particularly reliable.
You will need to manually enter and calculate the VAT rate, subtotals, and total for each of the differing rates for the items on your invoices. And each time you do so, you will need to be careful to enter the correct rates and amounts. Numbers that can easily fall prey to small mistakes and potentially impacting your business finances.
Instead, by using invoicing software like Debitoor, you eliminate the chance of error in your calculations for multiple VAT rates in an invoice. When you select the rate from the dropdown menu for each item in your invoice template, Debitoor takes care of the rest by automatically doing the necessary calculations.
As outlined above, with online invoicing software, adding items with different VAT rates to the same invoice is no problem at all. In fact, it’s easier, faster, and less risky than handling the calculations yourself.
In your invoice template in your Debitoor account, you can easily select which VAT to apply for each line of items listed. You’ll see this option in the line of the invoice itself when you click on the downward arrow on the right side of the VAT box. From this, you can select the appropriate VAT for your product or service.
You can then save the product, complete with the VAT rate so that the next time you add it to an invoice, that VAT is automatically applied.
At the bottom of the invoice, you will then see the total VAT amounts for each VAT rate listed before being included in the total amount due. You can also adjust your invoice design and choose how VAT is displayed on your invoices.