> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.invoice123.com/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# How to Activate the Display of VAT Types in Invoices?

Adding VAT types to your account in Invoice123 is important for ensuring compliance with tax regulations, providing transparency to clients regarding tax components, and facilitating streamlined accounting and reporting. It helps accurately calculate and report VAT, simplifies tracking of taxable sales and input tax credits, and enhances customer trust by demonstrating credibility in tax compliance. 
 
### How to do it?
1. Select **SETTINGS** from the menu bar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/settings_12zbx1v.png)
2. Select **TYPES OF VAT** in the sidebar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/types-of-vat_ohy6oe.png)
3. Activate the **SHOW VAT TYPE DESCRIPTIONS IN INVOICES** settings and add needed VAT types
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-11540_mkuqg1.png)
4. Confirm the settings by clicking **SAVE CHANGES**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-11551_1ph8k6c.png)
5. The selected VAT types will be visible on the invoice and its documents
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-11555_jx116h.png)