VAT on your invoices

Add your VAT registration number, set your default VAT rate and change it per invoice. General guidance, not tax advice.

2 min read

Whether you charge VAT depends on whether you're VAT registered. Mechanics Hub works either way: you just set the right rate. This is general guidance, not tax advice. Check with your accountant or HMRC if you're unsure.

Set your default VAT rate

In Business Settings → Business, under Invoice defaults, set the VAT Rate (%). Every new invoice starts with this rate, and the invoice shows the subtotal, VAT and total.

VAT registered: set your rate, for example 20%.
Not VAT registered: set the rate to 0%.

Changing VAT on one invoice

Each invoice has its own VAT Rate field, so you can change it for a single invoice without changing your default.

Showing your VAT number

If you're VAT registered, HMRC expects your VAT registration number on your VAT invoices. Add it in Business Settings → Business, in the VAT registration number field. It prints on every invoice under your company number, on the PDF and on the online copy your customer sees.

Leave it blank if you're not VAT registered.

If you use Xero

On the Xero tab, set the default VAT/tax type to match how you account for VAT. If an invoice's total in Xero doesn't match, the tax type is usually the cause. Fix it in the Xero settings, then retry the sync from the invoice.

FAQ

Where do I add my VAT number?

Business Settings → Business → VAT registration number. It then appears on all your invoices.

Where do I set the VAT rate?

Business Settings → Business → Invoice defaults → VAT Rate (%). You can also change the rate on any individual invoice.

I'm not VAT registered. What should I do?

Leave the VAT registration number blank and set your default VAT rate to 0% so your invoices don't charge VAT.

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