How to calculate the VAT from a VAT inclusive invoice

How to calculate the VAT from a VAT inclusive invoice
Example of a VAT inclusive invoice
Bed & Breakfast is a standard rated taxable supply when the company is VAT registered. If
they are registered, they should have their VAT number on their invoices.
With the example above, the company is displaying their registration number, therefore this
is a VAT inclusive invoice.
If the company is not VAT registered then the supply will be outside the scope (OS).
To work out the amount of VAT in a VAT inclusive price, you need to do the following
calculations:
• Divide the total by 23 then times by 3 to get the VAT amount
• Divide the total by 23 then times by 20 to get the net amount
This can then be filled in on the payment slip in the normal way.
Therefore:
• Divide £76.00 by 23 then times by 3 = £9.91 VAT amount
• Divide £76.00 by 23 then times by 20 = £66.09 net amount
If you have any further queries, please contact the Payments Team on extn 3743 or email
[email protected], or contact Liz Shillingford on extn 3098 or email [email protected]