The system fully support a VAT/TAX. To activate it go to settings and turn it on by providing your TAX number and define the basic VAT amount for your core services.

You can add your own tax rates if necessary. When you enable TAX handling all the forms and invoices will change from simple to detailed:

You will be able to add detailed information about the billed products and all the invoices will have a VAT/TAX information on them