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How to add VAT to invoices If your business is VAT-registered, stub makes it simple to add VAT to your invoices so you stay compliant and your customers know exactly what they’re paying.
Step 1: Set up VAT in Business Settings Before you can add VAT to invoices or quotes, you’ll need to set it up first.
Go to Settings → Business. Scroll to the VAT section and click + Add. In the pop-up, enter your VAT Number. Click Save. stub will automatically create:
VAT (15%) – standard rateVAT (Zero-rated) – 0%VAT (Exempt) – 0%To add a custom rate (for example, if you trade in another region), click + Add again and set your own percentage.
5. Tick “Show on invoices and quotes” so your VAT number appears automatically on all VAT invoices.
You’ll now see your VAT number appear in the From section of your invoices, alongside your business details.
Step 2: Add VAT to items in an invoice Go to Sales → + Invoice. Under From , check that your VAT number appears correctly. In the To section, you can also add your customer’s VAT number if they are VAT-registered.Click + Customer and fill in their details, including VAT Number . You can add it directly when creating the invoice or when you add a new customer to your list. 4. Add a line item by clicking + Item.
5. Fill in the item details such as name, description and price.
6. Click + VAT below the price field and choose the rate you want to apply:
VAT (15%) for standard-rated items.Zero-rated or Exempt where applicable.stub instantly calculates the VAT and adds it to your invoice total.
Once added, you’ll see the VAT amount displayed beneath the item price (for example, “VAT (15%) R600”).
Exclusive vs inclusive VAT: think of it like toppings 🍕 stub uses VAT-exclusive and VAT-inclusive pricing. Your price is the base, and VAT is added on top.
Exclusive example:
Item price = R4,000 VAT (15%) = R600 Invoice total = R4,600 Inclusive example
If your R4,000 already included VAT, stub would split it into R3,478.26 + R521.74 VAT.
How discounts work with VAT Currently, discounts apply to the invoice total , not individual line items.stub then calculates VAT on the discounted total .
💡 Line-item discounts are coming soon.
Why VAT invoices matter It’s the law: SARS requires every VAT invoice to show:
The words “Tax Invoice” Your VAT registration number The VAT rate and VAT amount Customer clarity: Clients can see exactly what they’re paying before and after VAT, no surprises.
Accurate reporting: VAT on invoices automatically feeds into your VAT / Sales Tax report , showing how much you’ve collected and what you owe to SARS.
Where to see VAT in your accounts Go to Reports (or via your Insights Dashboard) → VAT / Sales Tax report to see:
VAT you’ve collected VAT you can claim back Totals by customer, supplier and category Think of it as your VAT scoreboard , keeping your books balanced and SARS-ready.
Tips for VAT invoices Make sure VAT is turned on in Settings → Business → VAT before invoicing. Always include your VAT registration number (stub displays it automatically once added). Add your customer’s VAT number if they are VAT-registered. Double-check which of your items are standard-rated , zero-rated , or exempt . Confirm your invoices say “Tax Invoice” when VAT applies (stub handles this automatically).