Invoicing glossary
VAT (value-added tax)
VAT (value-added tax) is a consumption tax added at each stage of the supply chain and ultimately paid by the end customer.
VAT (value-added tax): a clear definition
If you're VAT-registered, you charge VAT on your invoices, show it as a separate line, and pass it to the tax authority. Invoices that include VAT usually must show your VAT number, the rate applied, and the tax amount. Rates and rules vary by country.
How Invco helps
Invco is an AI invoicing assistant that handles vat (value-added tax) and the rest of your billing for you. Design a custom invoice template, then let Claude create and send invoices on it in plain English — with subtotals, tax, and totals calculated automatically and every invoice tracked from sent to paid. Start free with one company.
- Related terms: Sales tax, Tax invoice
Frequently asked questions
What is vat (value-added tax)?
VAT (value-added tax) is a consumption tax added at each stage of the supply chain and ultimately paid by the end customer.
What is sales tax?
Sales tax is a tax on retail sales, added at the point of sale and collected by the seller on behalf of the government.
Invoice the easy way with Invco
Let an AI assistant create and send your invoices on a template that looks like your brand. Start free with one company — no credit card required.
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