This article explains how clients can add a Value Added Tax (VAT) to invoices.

Value Added Tax (VAT) is an indirect tax that applies to the supply of goods and services.

More about VAT can be learned in our blog.

Only clients can make VAT adjustments to an invoice, not contractors.

Deel does not provide legal advice on VAT

How to Add a VAT Percentage to an Invoice

✅ Step 1 -Select the contractor

From the homepage, click the People icon followed by the All People tab. Select the contractor.

✅ Step 2 - Click the option Payments, expenses & work submission

✅ Step 3 - Select Add VAT

Add the amount to be added as a percentage (%), and add further details if needed.

Clients can also make this a recurring adjustment by toggling the option on.

✅ Step 4 - Click Adjust Amount

The VAT percentage is automatically calculated based on the total invoice amount. If a bonus or other adjustments are added, the VAT total will be recalculated accordingly.

The VAT will be applied in the current cycle once other line items, such as expenses or bonuses, are approved.

Note

If a client wants to create another invoice for the same billing cycle with a different VAT percentage, the previous invoice must first be paid. Once the first invoice is settled, any new line items will automatically be applied to a second invoice for that cycle. On this new invoice, the VAT percentage can be removed, edited, or updated to a different value as needed.