Construction and renovation
Materials, crew scheduling and skip hire cost money before work begins. A deposit covers those costs and confirms the client’s commitment. Invoice the deposit and final balance correctly for your business, your client and VAT.
Deposits of 20 to 30% are common in construction. Agree the amount in the quote and invoice it when the client approves. VAT becomes due when you invoice or receive payment.
Forgetting the deposit in the final account causes overbilling and a credit note. Deducting it incorrectly, such as VAT-inclusive instead of VAT-exclusive, distorts the VAT return. Unclear records also lead to disputes over what has already been paid.
In ProFactuur
State the percentage and invoicing date in the quote or terms. Online approval provides a written record of agreement.
Use one line, such as 30% deposit according to quote, at the VAT rate for the work. Include a payment QR code for easy transfer.
Record the payment or import your bank statement. Partial payments are tracked so the outstanding balance stays clear.
Invoice the remaining balance at handover and state the deposit invoice number and amount in the description.
Example
Roof renovation for a private client, home built in 1972, approved quote of €16,000.00 excluding VAT at 6%.
| Deposit invoice: 30% of €16,000.00 | €4,800.00 |
| 6% VAT on the deposit | €288.00 |
| Payable on approval | €5,088.00 |
| Final account: remaining 70% | €11,200.00 |
| 6% VAT on the balance | €672.00 |
| Payable at handover | €11,872.00 |
The client pays €16,960.00 in total, exactly the quote including 6% VAT. VAT is declared in each relevant invoicing period.
If the project is cancelled after invoicing, issue a credit note for the full deposit or the refunded portion. Sent invoices cannot be deleted or changed; ProFactuur prevents this and preserves continuous numbering. Ask your accountant about any amount retained as compensation, for example for ordered materials: its VAT treatment may differ from payment for work.
Make starting work conditional on receiving the deposit and state this in the quote. CSV or CODA bank imports show when payment arrives, so you can order materials and schedule the crew confidently.
Invoice larger projects in instalments based on completed work.
Read moreProfessional quotes your clients approve and sign online.
Read moreConditions, mandatory wording and evidence for the reduced rate.
Read moreCreate your account and start on Free. Pick a paid plan as soon as you want to send documents.
