I think I've been doing the VAT wrong on my invoices?
I am using Xero to make my sales invoices for the past 6 months, but think I've been doing it wrong? When I charge a customer I have been doing it inclusive of 20% tax so for something that I am charging £1000 for, I've put item price as £800 and VAT at £200 to make it £1000. A customer queried it as the price was lower than he was expecting and said he thought it should be £1200? I've just found this VAT calulator https://vat-calculator.tax/ and it looks like he might be right? Which is correct please? If I have been doing it wrong is there anything I can do to correct ones already paid?
This discussion has been closed.