How to write a VAT invoice in the UK

When you need a VAT invoice

If you’re VAT registered and you sell standard-rated or reduced-rated goods or services to another VAT-registered business, you must give them a VAT invoice. They need it to reclaim the VAT.

You don’t have to issue a VAT invoice for zero-rated or exempt supplies, or to customers who aren’t VAT registered, though it’s good practice to give one if asked.

What a full VAT invoice must show

HMRC’s VAT guide lists what every full VAT invoice needs:

• A unique invoice number that follows on from the last one
• The time of supply (tax point), and the invoice date if it’s different
• Your business name, address and VAT registration number
• Your customer’s name and address
• A description of the goods or services
• For each item: the quantity, the unit price, the VAT rate and the amount before VAT
• The total before VAT
• The rate of any cash discount offered
• The total VAT, in sterling

Simplified invoices for £250 or less

If the total, including VAT, is £250 or less and your customer agrees, you can give a simplified invoice. It must show your name, address and VAT number, the time of supply, a description of what you supplied, and for each VAT rate the total including VAT and the rate.

If the total is over £250, or the customer asks for a full invoice, you must give a full one.

Send it within 30 days

You should normally issue a VAT invoice within 30 days of the time of supply. HMRC allows longer in some cases, and otherwise you can ask its VAT Written Enquiries Team.

Other details worth including

Limited companies should show their full registered name. A clear due date, your payment terms and an easy way to pay all help you get paid on time.

• Your payment terms and due date
• Your bank details, or a Pay online link
• A purchase order number if your customer uses them

Keep copies

Keep a copy of every VAT invoice you issue and receive as part of your VAT records.