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]