What should be on a VAT invoice?

What should be on a VAT invoice?

Are you VAT-registered? Are you complying with the regulations when sending out VAT invoices and claiming against supplier invoices? We’ll give your invoice process a review to make sure you’re ticking all the boxes.

Whether you’re selling or buying, it’s important to ensure that any VAT invoices you issue or receive comply with the strict VAT regulations.


Please do so to avoid problems both for you and for your customers.


If you reclaim VAT using a defective invoice, HM Revenue & Customs (HMRC) can disallow the claim. HMRC can also charge penalties and interest on any amounts you’ve incorrectly claimed. Equally, your business has an obligation to your customers to send out invoices that meet the regulations and include the right documentation to support their VAT claims.


The three different types of VAT invoice


Three types of documents can be produced, so it’s important to understand their differences and to use the right type for your business.


1. A simplified invoice


The simplified invoice is intended for sales under £250 and keeps the amount of information on the invoice to a minimum. The invoice must include:


  • The seller’s name, address and VAT registration number.
  • A unique sequential invoice number.
  • The tax point (usually the date of supply).
  • A description of the goods or services supplied and the applicable VAT rate(s).
  • The total charge, including VAT.


2. A full VAT invoice


A full VAT invoice is the standard and more comprehensive than a simplified one in most circumstances. It includes the same fields as the simplified invoice plus:


  • The invoice date (usually the same as the tax point).
  • The customer’s name and address.
  • Whereas the simplified version only requires a VAT-inclusive total, the full version must show the VAT amount excluded and the total VAT charged.
  • The unit price and quantity of goods must also be shown, as well as details of any discounts.


3. A modified VAT invoice


A modified VAT invoice can be issued for retail sales exceeding £250. It contains the same information as a full VAT invoice and must include the total charged, including VAT. In practice, that will be on the full VAT invoice anyway.


Make sure you stick to the regulations.


With three different types of VAT invoices available, it’s vital to choose the right type of documentation and adhere exactly to the guidance and regulations.


  • You don’t need to issue a VAT invoice if your customer isn’t VAT-registered or all the items charged are zero-rated or exempt.
  • You mustn’t issue VAT invoices for goods supplied under the VAT second-hand schemes, and special invoices are required for supplies under the Margin Scheme, Global Accounting Scheme, Auctioneers Scheme, and Tour Operators Margin Scheme.
  • Invoices should be issued within 30 days of the supply, and you must keep copies (electronic copies are acceptable) of all invoices issued, including spoiled ones.
  • Although invoice numbers must be sequential, you can have multiple series in use at the same time.
  • NOTE: Quotes and pro-forma invoices are NOT acceptable when claiming VAT.


Helping you keep your VAT procedures in order


As you can see, it is important to have your VAT invoices in order and proper VAT invoices for any purchases where you are reclaiming VAT charged.


As your adviser, we can check that the invoices you produce comply with VAT regulations and, more generally, that your VAT procedures are robust.


Get in touch to review your VAT procedures.