It's possible to add VAT invoices. Please follow the steps below to do so.
First, create the Payment/Invoice for the relevant student. Click on the Add a Fee Link to open the Add a Fee section.
From here, adding further charges to the customer's payment is possible. Give a description and either the VAT amount or a percentage. Click the 'Add to receipt' button to add to the invoice.
The VAT charge will be added to the invoice.