Interest on Vat invoices

By Alicia Human · Updated

Borrie

Borrie said:
4 August 2016 at 13:34

Good Day, I want to send out a statement to a client. And I need to ad interest on the outstanding amount. Should I calculate the interest on the non-vat amount of the invoice, or should I charge interest on the full outstanding amount (That includes the VAT)?
TaxTim Alicia

TaxTim Alicia said:
4 August 2016 at 16:18

Interest would be charged on the total amount, however the interest itself would not have VAT on it.