Would need to clarify before answering but I will assume that your business is registered for VAT (?), and that the goods/ materials are also inclusive of your markup, so for example you bought them for £600 inclusive of VAT (£500 + £100 VAT), and are selling them for £833.33 + £166.67 VAT (£1000 total)
It really depends who you are supplying the goods to.
If it is the general public, or a non VAT registered business, then there is no need to show the VAT seperately you would only add VAT to the labour so would have £1000 materials + £720 labour Total £1720.
If it is a supply to another VAT registered business, you will need to show the VAT seperately. there are some variations but basically what the invoice should show is
the unit price or rate, excluding VAT
the quantity of goods or the extent of the services
Yes we are VAT registered and we provide services to general public.
If we bought the boiler for £1000 it is a real price not mark up on it , and our labor is £ 600, we should only add VAT on the labor.
We have been VAT registered for only the last 3 months and our accountant told us to charge the VAT on the total, so our quotes were quiet high. we need to change the way we are invoicing our clients, is that right?
