Deposit and VAT

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First, to request a deposit, use a sales quote, not an invoice. You can rename the sales quote anything you want, such as Pro Forma Invoice, Proposal, Deposit Request, etc. See this Guide:

Record customer deposits and advances

Customer deposits and advances are funds received by a business from a customer before they have been earned. While the funds may be present in a bank or cash account of the business, they are actually being held in trust for the customer and represent a liability the business must eventually either repay or convert to income by completion of the economic activity for which they are intended. Some examples include: Deposits accompanying purchase orders for custom manufacturing Receipts from pr…

When final delivery is made, raise a sales invoice for the full price. The customer’s deposit, assuming it was received before work began, will be automatically applied.

Second, if all VAT is included in the 2,000, just mark the forms as being tax-inclusive. See this Guide:

Create sales invoice with tax-inclusive amounts

If you charge tax, by default unit prices on sales invoices are treated as tax exclusive. You can make unit prices tax-inclusive when creating or editing invoices. [image] Tax exclusive means, when line items on the invoice are subject to tax, the tax will be added to the tax-exclusive total. For example, let’s say we charge a customer 1,000 with 10% tax. [image] Since the amount of 1,000 is tax exclusive, when you create the invoice, 10% tax will be added to the 1,000, increasing the total…

But if 2,000 includes VAT, why are you adding another 14%? Do not charge VAT again. Further, your numbers don’t make sense. If your VAT rate is 14%, VAT on 1574.39 should be 220.41, and the total should be 1794.80.