Calculate VAT on sub total or per line item?

[John Blakeman]

Which model of VAT calculation, per line item or sub total, do you go with and why?

 

[John Blakeman]

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[Paul Norman]

Our software calculates the VAT on each line item, simply because some of our lines do not attract standard rate VAT.

 

[TheCyclingProgrammer]

My invoices calculate on the sub-total, but either is fine as long as you round things properly:

17.5: https://www.gov.uk/government/publi...#vat-invoices-particular-situations-and-rules

 

[MyAccountantOnline]

Which model of VAT calculation, per line item or sub total, do you go with and why?

I think for a large number of people it'll be whichever way their accounting software does it.

 

[Rymer Associates]

As long as everything you sell attracts VAT, then on the subtotal is fine. It may also depend how you're creating invoices. i.e. Software like Sage vs a template on Excel. Just let me know if you need any pointers! Happy to help!