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Why there is VAT in the invoice?

VAT, PVN, value added tax

Written by Martins Vilums

To begin with, Abillio currently only provides invoicing to legal entities (individual and corporate) engaged in economic activities.

The majority of these businesses, like Abillio, pay value-added taxes.

This means that when Abillio invoices, VAT is added to the invoice, but the recipient of the invoice, if a VAT payer, can recover the value added tax.

As a result, when invoicing, you should include value added tax.

For example, if you agreed with the customer that the fee for the service is 100 EUR, the invoice would be issued at that amount plus value added tax (VAT). The VAT rate for Abillio will be calculated automatically based on customer and service information.

If the invoice is issued to a person or company that is not a value added tax payer, the calculated tax will be at the expense of this entity because it is not a VAT taxable transaction.

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