How to show a VAT breakdown per rate on an invoice

To show a VAT breakdown per rate, print one row per VAT rate with the taxable amount, the rate and the VAT. In Swiftly Workspace you give each line its tax rate, and the finalized invoice's PDF, in the Modern or Classic layout, prints that table under Tax breakdown.

An invoice with one VAT rate needs little explanation: a subtotal, the VAT and the total. Once a single invoice mixes rates, say a service at the standard rate and a book or a training day at a reduced one, a single VAT figure no longer tells your customer how it was worked out. The breakdown does.

Why invoices list VAT per rate

In the EU, the VAT Directive lists the details a full VAT invoice must show. Among them are the taxable amount per rate or exemption, the rate applied and the VAT payable. Each member state applies those rules through its own law, and simplified invoices are allowed for some small amounts, so check your local rules. Many other countries with VAT or GST ask for something similar.

There are practical reasons too. Your customer's accountant books VAT per rate, so a breakdown saves them from recalculating your invoice. And a mistake is easier to spot when each rate stands on its own row. The invoice checklist covers the other details an invoice should carry.

What a breakdown row holds

Each row covers every line that shares one VAT rate:

The rows add up: the taxable bases together make the subtotal, and the VAT amounts together make the invoice's total VAT. If they don't, a line was rounded on its own.

Where no VAT is charged, because of an exemption or the reverse charge, EU rules generally ask the invoice to say why. Agree the exact wording with your accountant.

How to get the breakdown on your invoice

1. Set up your tax rates. Your company's rates live in Administration, then Reference Data, under Tax Rates. Use Add Tax Rate for any rate you charge that is missing.
2. Give your items a default rate. On a Mac, an invoice line takes the item's Default Tax Rate when you pick the item. That field starts hidden; an admin shows it in Configure, then Item. The items catalog guide explains how to set up your catalog.
3. Check the rate on every line. In the Add Line Item sheet on a Mac, the Tax Rate is filled in from the item and you can change it. On iPhone and iPad you choose the tax rate on the line. The how-tos for creating an invoice on Mac and on iPhone or iPad walk through the whole draft.
4. Finalize the invoice. Every invoice stays a draft until a person finalizes it. At that moment Swiftly groups the lines by tax rate and works out the taxable base and VAT for each group.
5. Open the PDF. With the Modern or Classic layout, the PDF shows the Tax breakdown table with the columns Rate, Taxable base and VAT. On a Mac, use PDF Preview on the finalized invoice.

Which layout shows the breakdown

The breakdown belongs to the Modern and Classic layouts. Receipt is the trimmed layout: it keeps a subtotal, a single VAT line and the total, and leaves the per-rate table out. If your invoices mix rates, pick Modern or Classic as the company default. Choosing an invoice layout compares the three.

The table's labels follow the language of the rest of the PDF: the customer's preferred language when the customer record has one, else your company's default document language.

Common mistakes

• One rate for everything. If every line shows the standard rate although some goods qualify for a reduced one, the breakdown will faithfully show one wrong row. Fix the item's default rate, then the lines.
• Rounding line by line. Small differences between the sum of line VAT and the VAT per rate are normal in many systems. Large ones mean a rate is wrong.
• A credit note with other rates. A credit note should reverse the same rates as the invoice it corrects, so its breakdown should mirror the original's.

Frequently asked questions

Do I need a VAT breakdown if every line has the same rate?

The breakdown then has one row, which repeats the subtotal and the VAT. That is fine and still clear. The table becomes useful as soon as a second rate appears on the same invoice.

Can one invoice mix a standard and a reduced VAT rate?

Yes, when the goods or services on it qualify for different rates. Give each line its own rate; the breakdown then shows one row per rate, so your customer can book each part correctly.

How do I show a zero-rated line on an invoice?

Give the line a zero rate from your tax rates, so it appears as its own row with no VAT. Many tax rules also ask for the reason, such as the exemption that applies, so check the wording with your accountant.

Why does my VAT total differ by a cent from my own sum?

VAT is usually rounded per line or per rate, and the two methods can differ by a cent on larger invoices. Small rounding differences are normal; a bigger gap points to a line with the wrong rate.