A subtotal is the sum of an invoice's line items before tax and before any invoice-level adjustments, such as a discount on the whole invoice or a deduction for a deposit already paid. It sits directly under the line items, above the tax and total rows, and it's the figure a reader uses to check the arithmetic. Example: three lines of €400, €250 and €150 give a subtotal of €800; a 10% discount brings it to €720; VAT at 21% adds €151.20; the total is €871.20. Common mistakes: calculating tax on the subtotal before the discount, which overstates the tax (in the EU the taxable amount excludes discounts granted at the time of supply, Article 79 of the VAT Directive), and mixing net and gross line prices so the subtotal adds up figures on different bases. Where several VAT rates apply, an EU VAT invoice needs the taxable amount per rate (Article 226), so a single subtotal isn't enough: show one per rate, then the tax on each.
What is a subtotal?
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