Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Invoices

Include Tax Amounts in Invoices

The way in which you include tax amounts in an invoice varies depending on the method in which you post an invoice.

Posting Non-LEDES Invoices

If you are posting a non-LEDES invoice, Tracker provides fields for you to specify the amount of tax included in your invoice. Tracker automatically calculates the tax to paid when you enter the amount subject to tax and tax rate.

Posting LEDES 1998BI-Formatted Invoices

LEDES invoice formats include specific fields for taxes. There are multiple time and billing systems that can produce LEDES invoices. If you do not have access to one of these systems, you can create and post LEDES invoices using the LEDES Generator.

Entering VAT Tax in a LEDES 1998B Invoice

The LEDES 1998B standard does not include fields for tax amounts. Companies that work with firms that need to charge tax should require these firms to use LEDES 1998BI invoices. However, Tracker has a specific method to recognize a VAT amount in a LEDES 1998B invoice.
To enter a VAT information so that Tracker automatically recognizes and designates a line item amount as a VAT amount:
  1. Enter the VAT amount as an expense line item (the EXP/FEE/INV_ADJ_TYPE identifier should be E).
  2. Enter the code "E124" in the field for the expense code (LINE_ITEM_EXPENSE_CODE). "E124" is the UTBMS expense code for "Other".
  3. Enter "Value Added Tax" or "VAT" for the line item narrative.

Tax Reimbursement Requirements

Some clients can obtain a reimbursement of tax amounts if they comply with the local jurisdiction's reimbursement requirements. If a client would like to obtain tax reimbursements, it is up to the law firm to determine how to comply with the local jurisdiction's requirements. In some cases, that may require submitting an electronic invoice through Tracker and submitting a paper invoice to the client.

This article applies to:

  • Product: Legal Tracker
  • Subject: Invoices
  • Audiences: Firm