Step 1 - Enable VAT on your account
Before tax appears on your invoices, you need to set your company type correctly.
Go to Settings - Business details
In the Identification section, set your company type to VAT Payer or Invoices with VAT
Save your settings
Once enabled, tax will appear on all new invoices and in your statistics. This setting has no effect on documents created before the change.
Step 2 - Configure your VAT rates
Billdu sets up your default tax rate and tax name based on your location when you sign up. You can change these at any time.
Go to Settings - VAT settings
You can set up to 3 VAT rates - a 0% rate is always available by default
Change the VAT name if needed (e.g., GST, HST, Tax)
Toggle Apply tax on invoices on if it is not already active
Click Save
Tip: You can also access VAT settings quickly when adding an item to your first invoice - tap VAT and Settings in the item pop-up window.
Step 3 - Apply tax to items on an invoice
When VAT is enabled on your account, a tax field appears on each line item when creating or editing an invoice.
Select the applicable VAT rate from the dropdown for each item
Different items can have different rates - for example, one at 20% and another at 0%
All prices are entered excluding VAT; Billdu calculates the VAT amount and total automatically
Note: Changing your VAT settings does not update tax rates on saved products and services. You need to update those individually, or use the Import feature to overwrite them in bulk.
Tax on pro-forma invoices
Pro-forma invoices are not tax documents. No tax appears in the total line of a pro-forma invoice. However, you can still display a tax rate on individual line items if needed.
Tax invoice label
In some countries, VAT-registered businesses are required to label their invoices as "Tax invoice." Billdu adds this label automatically once you select Invoices with VAT in your business settings.
This is automatically enabled for businesses in the US, UK, Canada, Ireland, Australia, South Africa, and New Zealand.
Negative tax (CIS deduction - UK)
If you need to apply a deduction such as the UK's Construction Industry Scheme (CIS), you can set up a negative tax rate.
Go to Settings - VAT settings
Enter a tax rate with a negative value (e.g., -20)
Click Save
When creating an invoice, add your item and select the negative tax rate from the dropdown
Business and tax ID numbers
Billdu displays the correct tax identification fields based on your country - for example, VAT Registration No. (EU/UK), Tax Registration No. (US), ABN (Australia), or NZBN (New Zealand).
To update your tax ID, go to Settings - My businesses and edit the relevant field
If the default ID label doesn't match your country's terminology, click the pencil icon next to it to rename it
The same renaming option is available for client tax IDs
Didn't find what you were looking for? Contact our support team, and we'll sort it out for you.