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What must be on a VAT invoice in the UK

Once your business is registered for VAT, the invoices you give to VAT-registered customers have to show certain details, so that your customer can reclaim the VAT and HMRC can follow the sale. Here is the list, the two shorter forms you may use instead, and an example.

A full VAT invoice must show

1. a unique invoice number that follows on from the previous one;
2. your business name and address;
3. your VAT registration number;
4. the invoice date;
5. the time of supply (tax point), if it is different from the invoice date;
6. your customer's name or trading name, and address;
7. a description that identifies the goods or services;
8. for each item: the quantity, the unit price excluding VAT, the VAT rate and the amount excluding VAT;
9. any discount;
10. the total excluding VAT, the total VAT and the total including VAT.

You must give a VAT invoice to a VAT-registered customer, usually within 30 days of the sale. You do not have to give one to a member of the public, though many shops do when asked.

An example

Total excluding VAT £150.00 · VAT at 20% £30.00 · Total £180.00.

The simplified VAT invoice (£250 or less)

If you sell to the public and the sale is £250 or less including VAT, you can give a simplified invoice. It needs your name, address and VAT number, the time of supply, a description of the goods or services, the total payable including VAT, and the VAT rate for each item. Till receipts in shops are usually simplified VAT invoices.

The modified invoice (over £250, to the public)

For a retail sale over £250 you can, if the customer agrees, give a modified invoice that shows the prices including VAT on each line, with the totals excluding VAT, the VAT and the total including VAT at the bottom.

Which VAT rate

• 20% standard rate — most goods and services.
• 5% reduced rate — for example home energy and children's car seats.
• 0% zero rate — for example most food and children's clothes. Zero-rated sales still appear on the invoice and your VAT return.

Some things are exempt from VAT altogether. GOV.UK lists the rate for each kind of goods and service; when in doubt, ask your accountant.

Common mistakes

• Charging VAT before you are registered. If you are not registered, you must not show or charge VAT.
• Leaving off the VAT number. Without it your customer cannot reclaim the VAT.
• Gaps or repeats in invoice numbers. Keep one sequence; if you cancel an invoice, keep it and issue a credit note.
• Rounding each line differently. Work out the VAT on the total or on each line, but do it the same way every time.

Make one now

Fill one in online with the free VAT invoice generator and download the PDF. To keep every invoice, set the VAT rate per item, send invoices on WhatsApp and see who still owes you, use the free InvoiceMate app — in English, Urdu, Hindi or Arabic.