Invoice questions › How do I work out the VAT?
How do I work out the VAT?
You multiply the amount before VAT by the rate. At 21% on €100 that is €21 of VAT.
VAT is worked out on the amount before VAT. Take your hourly rate or your unit price, add the lines up, and multiply by the rate. At €100 and 21% the VAT is €21, and your customer pays €121.
Only know the amount including VAT? Divide by 1.21 (at 21%) or by 1.09 (at 9%) to find the amount before VAT. The difference is the VAT. Those two are the Dutch rates; every country sets its own, so put yours in the sum.
More than one rate on a single invoice? Then you work each rate out separately. On the invoice you show, per rate, what the amount before VAT is and how much VAT belongs to it.
In this editor you fill in the amounts and rates per line; the totals and the VAT per rate appear underneath by themselves.
In the editor you fill in the amounts and rates per line; the VAT per rate and the total appear underneath by themselves. No account needed to look around.
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This page is a summary, not legal advice. Invoicing is set at EU level but the details are national, so check with the European Commission or your own tax authority if your situation is unusual.