If you or your customers are in a country that uses valued added tax (VAT), such as the United Kingdom, Microsoft Invoicing calculates the VAT for you, and applies the amount to your invoices.
For tax reasons, you must also specify your VAT registration number in the settings for Invoicing.
You can't add or remove VAT rates, but you can change the default VAT rate in Settings. By default, Invoicing uses a service to validate VAT registration numbers, but we recommend that you read VIES disclaimer published by the European commission. If you choose to disable the service, you must verify all VAT registration numbers.