Should my expenses include or exclude VAT or GST?

💡 Why You Should Exclude VAT from Spend Data in Carbon Accounting

When entering spend data into our platform, it’s important to exclude VAT (or GST) from your figures—unless otherwise specified.

Here’s why:

📉 Our emissions factors are based on net spend (excluding VAT)

Our emissions factors represent the average emissions per unit of currency for the actual goods and services purchased. VAT is a tax, not a product or service, so it doesn’t correspond to any emissions.

Including VAT would artificially inflate your emissions estimate.

🛒 Exception: Consumer goods

In a few categories—like food, personal items, or retail purchases—where emissions factors are based on household consumer data, VAT is typically included. This is because these products are most often bought by individuals, and emissions factors reflect typical retail pricing.

But for most business purchases (e.g. software, travel, professional services), VAT should be excluded.

✅ Best Practice

When uploading spend data:

• Exclude VAT from amounts where it’s clearly shown

• If you’re unsure, use the net amount (what the supplier is actually charging for the good or service)

• Reach out to us if you’re working with mixed or inclusive pricing

💬 Need help checking your data? Our team is here to support you.