UK VAT Invoice Requirements: What to Show

A UK VAT invoice is more than a bill. For a VAT-registered customer it is the document that lets them reclaim the VAT they paid, and for you it is part of the record HMRC can inspect. That is why the details matter: a missing VAT number or a wrong total can make an invoice invalid for your customer’s claim and awkward for yours.

This guide sets out what a valid UK VAT invoice must show, based on HMRC’s VAT guide (Notice 700), and explains the shorter forms, the timing rules, how to treat zero-rated and exempt items, foreign currency, credit notes and record keeping. It includes a full example. To prepare one, use the free invoice generator, which has fields for your VAT number, tax label and rate.

Quick answer: A full VAT invoice needs a unique sequential number, the time of supply, issue date, your name, address and VAT number, your customer’s name and address, a clear description with quantity and unit price, VAT rate and amount per rate, and the total VAT in sterling. Issue it within 30 days of the supply. For sales of £250 or less, a simplified invoice is allowed.

What a VAT invoice is and who needs one

A VAT invoice is an invoice issued by a VAT-registered business that charges VAT on a supply to another business. It shows the VAT separately, so the buyer, if registered, can use the invoice as evidence when claiming back the VAT.

Situation	Do you need a VAT invoice?
You are VAT-registered and sell to another business	Yes, normally
You are VAT-registered and sell to the public	Not unless asked; retailers must supply one on request
You are not VAT-registered	No. You cannot charge VAT or issue a VAT invoice
You sell only exempt or out-of-scope goods or services	VAT invoice not required
You are a business buying and want to reclaim VAT	You need a valid VAT invoice from the supplier

You must register for VAT if your taxable turnover goes over £90,000 in the last 12 months, or you expect to go over it in the next 30 days. You can also register voluntarily. Once you are registered, you must charge VAT on taxable supplies and show it properly on invoices.

The UK VAT rates

There are three rates of VAT in the UK. Check the current rates on GOV.UK before you invoice, because they can change.

Rate	Currently	Examples
Standard	20%	Most goods and services
Reduced	5%	Domestic fuel and power, child car seats and certain other goods
Zero	0%	Exports from Great Britain, some food, books and children’s clothes

A zero-rated supply is still a taxable supply. You must still account for it and show it on your invoice, with the rate as 0%. Exempt supplies and out-of-scope supplies are different from zero-rated, and must be shown clearly as outside the charge to VAT.

How VAT works for a small business, in plain English

It is easier to follow the invoice rules once the flow of VAT is clear. VAT is a tax on the value added at each step of a supply chain, collected by VAT-registered businesses on behalf of HMRC. You charge VAT on your sales, which is called output tax, and you can usually reclaim the VAT you paid on business purchases, which is called input tax. Each period you pay HMRC the difference.

Item	Amount	VAT at 20%
Your sales in the quarter, net	£30,000.00	£6,000.00 output tax
Your business purchases in the quarter, net	£8,000.00	£1,600.00 input tax
VAT you owe HMRC		£4,400.00

The VAT invoice is the evidence on both sides of this calculation. The invoices you issue support the output tax you report. The invoices you receive from suppliers support the input tax you reclaim. If a supplier’s invoice is missing a required detail, you may not be able to reclaim the VAT on it, and if your invoices are missing details, your customers may not be able to reclaim theirs. That is why this paperwork gets so much attention.

The customer’s business matters too. A VAT-registered business can usually reclaim VAT, so for them the price excluding VAT is the real cost. A consumer or an unregistered business cannot, so for them the VAT-inclusive price is what they pay. This is why business-to-business invoices usually show prices excluding VAT, and shops show prices including it.

The details a full VAT invoice must show

HMRC’s VAT guide lists what must appear on any VAT invoice you issue. Here it is as a checklist.

#	Requirement	Example
1	A sequential number that uniquely identifies the document	00042
2	The time of supply, also called the tax point	14 November 2026
3	The date of issue, if different from the time of supply	17 November 2026
4	Your name, address and VAT registration number	Maya Chen Design Ltd, 12 High Street, Leeds, VAT GB123456789
5	The name and address of your customer	Northline Ltd, 40 King Street, Manchester
6	A description sufficient to identify the goods or services	Brand identity design, phase 2
7	For each description: quantity or extent, VAT rate and amount payable excluding VAT	20 hours at £70.00, 20%, £1,400.00
8	The gross total amount payable, excluding VAT	£1,400.00
9	The rate of any cash discount offered	2% if paid within 10 days
10	The total amount of VAT chargeable, in sterling	£280.00
11	The unit price, where there is a countable unit	£70.00 per hour

Some points on these deserve explanation.

Sequential numbering

The number must be based on one or more series that uniquely identify each document. You can use separate series, for example for different branches or for credit notes, as long as each document has a unique identifier. Gaps raise questions, so if an invoice is cancelled, record why. See invoice number formats for ideas.

Time of supply and date of issue

The time of supply, or tax point, is normally the date the goods are delivered or made available, or the date the service is completed. It decides which VAT period the sale falls in. If you issue the invoice on a different date, both dates should appear. For services performed over time and for payments in advance, the tax point can arise earlier, so check the rules for your situation.

Name and address

If you trade under a different name, you may use the trading name on the invoice, but the name and address under which you are registered for VAT must be shown somewhere on the document.

Description, quantity and unit price

The description should be enough to identify the goods or services. The unit price applies where the supply can be counted, such as an hourly rate or a price for each standard service. If the supply cannot be broken down, the total price excluding VAT can serve as the unit price. The unit price may not need to be shown at all if it is not normally provided in your sector or required by the customer.

VAT per rate

If the invoice contains items at different rates, show a subtotal and VAT for each rate. This also helps your customer’s bookkeeping.

Working with VAT-inclusive and VAT-exclusive prices

You will often need to move between prices with and without VAT. HMRC’s guidance gives the arithmetic at the standard rate of 20% and the reduced rate of 5%.

Task	At 20%	At 5%
Add VAT to a price excluding VAT	Multiply by 1.2	Multiply by 1.05
Remove VAT from a price including VAT	Divide by 1.2	Divide by 1.05
Find the VAT in a VAT-inclusive price	Divide by 6	Divide by 21

Some examples:

Starting point	Calculation	Result
Chair, £60 excluding VAT	£60 × 1.2	£72.00 including VAT
Table, £180 including VAT	£180 ÷ 1.2	£150.00 excluding VAT, £30.00 VAT
Child car seat, £200 excluding VAT	£200 × 1.05	£210.00 including VAT
Stairlift, £483 including VAT at 5%	£483 ÷ 1.05	£460.00 excluding VAT, £23.00 VAT
Receipt for £186.00 including VAT at 20%	£186 ÷ 6	£31.00 VAT

The common mistake is to take 20% off a VAT-inclusive price, which gives the wrong answer. 20% of £180 is £36, but the VAT in £180 is £30, because the VAT was added to a smaller base. Always divide, not subtract a percentage.

An example of a full VAT invoice

INVOICE No. 00042 Date of issue: 17 November 2026 Time of supply: 14 November 2026 From: Maya Chen Design Ltd, 12 High Street, Leeds LS1 1AA. VAT reg. no. GB 123 4567 89 To: Northline Ltd, 40 King Street, Manchester M2 4WU PO reference: PO-2026-0412

Description	Qty	Unit price	VAT rate	Net amount
Brand identity design, phase 2	20 hours	£70.00	20%	£1,400.00
Brand guidelines document, 24 pages	1	£900.00	20%	£900.00
Printed samples, delivered	1	£120.00	0%	£120.00

Total net, standard rate (20%)	£2,300.00
VAT at 20%	£460.00
Total net, zero rate (0%)	£120.00
VAT at 0%	£0.00
Total payable	£2,880.00

Payment due 15 December 2026 (30 days). Bank details: Maya Chen Design Ltd, sort code 00-00-00, account 00000000, reference 00042. A 2% discount is available if paid within 10 days.

Notice how each of the required details appears: the number, both dates, the registered name and VAT number, the customer, the descriptions with quantities and unit prices, the VAT rate per line, the net totals by rate, the VAT amount and the cash discount rate.

Business customers, consumers and VAT numbers

Who your customer is affects what they need from you.

Customer	Can they reclaim VAT?	What they need
VAT-registered UK business	Usually yes	A full VAT invoice, or a simplified one if £250 or less
Unregistered business	No	Usually a normal invoice or receipt
Consumer	No	A receipt or invoice; a VAT invoice only if they ask and are registered
Business in another country	Depends on place of supply	A document matching the rules for that sale
Public body or charity	Often limited	Normally a standard VAT invoice

You are not required to check your customer’s VAT number for UK sales, but showing theirs on the invoice, where they give it, is good practice and helps with the paperwork. For sales to businesses abroad, the customer’s VAT or tax number often matters for how the sale is treated, so ask for it and check that it is valid.

Your own VAT number is usually GB followed by nine digits. If you are not registered, you must not show a VAT number or charge VAT. If you are applying for registration and have not yet received your number, there are special rules about timing, so keep your invoices and issue them with the number once you have it.

Simplified and retailers’ invoices

For smaller sales, the rules allow a shorter invoice.

	Simplified VAT invoice	Retailers’ VAT invoice
Conditions	Supply is £250 or less (including VAT) and your customer agrees; customer not from an EU member state if you are in Northern Ireland	Retail sale of £250 or less; customer not from an EU member state if you are in Northern Ireland
Must show	Your name, address and VAT number; time of supply; description; for each rate, total payable including VAT and the rate	The same items
Must not include		Exempt supplies
Who uses it	Any VAT-registered business making smaller sales	Retailers
Customer’s claim	Can use it to reclaim VAT	Can use it to reclaim VAT

Retailers are required to provide a VAT invoice if a VAT-registered customer asks for one, and may be penalised if they do not. For sales over £250, you must issue a full VAT invoice.

An example of a simplified invoice:

Item	Detail
Seller	Greenfield Supplies, 3 Mill Lane, Bristol, VAT GB 987 6543 21
Time of supply	14 November 2026
Description	Printer paper and toner
Total payable including VAT	£186.00
VAT rate	20%

The VAT included in £186.00 at 20% is £31.00, because VAT is one-sixth of a VAT-inclusive price at the standard rate: £186.00 ÷ 6 = £31.00. You do not have to show the VAT amount on a simplified invoice, but many businesses do.

Discounts and how they affect the VAT shown

Discounts change the VAT charged, so they must be reflected correctly. The general principle is that VAT is due on the amount actually charged, but there are different kinds of discount.

Type of discount	How it works	VAT
Trade discount	A reduction in the price, such as a volume discount, shown on the invoice	VAT on the reduced price
Cash or prompt-payment discount	A reduction offered if paid early	The invoice shows the discount rate, and VAT is normally calculated on the discounted amount, whether or not it is taken
Settlement after the sale	A later adjustment	Handled by a credit note
Free gifts and samples	Goods given away	Special rules apply; check HMRC guidance

An invoice that offers a cash discount must show the rate of the discount, as required in the list of details. For example, “2% discount if paid within 10 days.” Check the current HMRC guidance on how to calculate VAT where a prompt-payment discount is offered, because the treatment affects the VAT figure shown on the invoice.

When to issue the invoice: the 30-day rule

HMRC’s guidance says you must normally issue a VAT invoice within 30 days of the tax point arising. If you issue it earlier than the supply, the invoice itself can create a tax point.

Case	What happens
Invoice issued at the time of supply	The tax point is the date of supply
Invoice issued before supply or before payment	The invoice can create the tax point on its issue date
Invoice issued within 14 days after supply	The 14-day rule can make the invoice date the tax point, if you choose
Invoice issued within 30 days	Required time limit for most supplies
Invoice issued late	You may need an extension or may face problems with your customer

The time limit can be extended in certain situations, such as while you wait for invoices from your own suppliers. In practice, the simplest approach is to invoice at the time you deliver, as you would for good cash flow anyway. See how to get paid faster.

The time of supply for services and advance payments

The time of supply, or tax point, decides which VAT period a sale belongs to, and it affects when you must issue the invoice. HMRC’s guidance sets out a basic tax point and exceptions. The summary below is a simplified view.

Situation	Typical tax point
Goods delivered or collected	The date the goods are sent, taken away or made available
Services completed	The date the work is finished
Invoice issued or payment received before the supply	The earlier date, for the amount invoiced or paid
Invoice issued within 14 days after the basic tax point	The invoice date, if you choose to use it
Continuous supplies over time, such as rent or a regular service	Each invoice or payment, depending on the arrangement
Deposits or advance payments	The date of the payment or invoice, for the amount

Two practical implications follow. If you take a deposit, VAT may be due on it at that point, and a VAT invoice for the deposit may be needed. And if you issue an invoice early, you may be bringing forward the VAT due, which matters for cash flow. If you take staged payments, read deposit and progress invoices for how to show them.

A worked invoice with a discount and two rates

Let us combine several of the rules in one invoice. A supplier sells goods at the standard rate and a child car seat at the reduced rate, and offers a prompt-payment discount.

Description	Qty	Unit price	Rate	Net
Workshop furniture, desk	2	£250.00	20%	£500.00
Child car seat	1	£200.00	5%	£200.00
Delivery	1	£40.00	20%	£40.00

Summary	Amount
Net at standard rate (£500 + £40)	£540.00
VAT at 20%	£108.00
Net at reduced rate	£200.00
VAT at 5%	£10.00
Total net	£740.00
Total VAT	£118.00
Total payable	£858.00

The invoice shows each rate separately, with the net and VAT for each, then the total VAT in sterling. If a cash discount of 2% were offered for payment within 10 days, the invoice would state “2% discount if paid within 10 days” and the VAT figures would follow the HMRC guidance for prompt-payment discounts.

A useful check is to confirm that VAT divided by net at each rate gives the rate: £108 ÷ £540 = 20% and £10 ÷ £200 = 5%. If either does not, a figure is wrong.

What customers ask about VAT invoices

Question	Answer
“Can I reclaim VAT with this?”	“Yes, if you are VAT-registered and the goods or services are for your business. The invoice shows my VAT number and the VAT charged.”
“Why is there no VAT on this line?”	“That item is zero-rated, exempt or outside the scope, and it is labelled on the invoice.”
“Can you reissue it with our VAT number?”	“Yes, I will correct it. Please send me the number and the registered address.”
“The invoice has no VAT number.”	“It must have one if I am VAT-registered. I will issue a corrected invoice.”
“Can you split the VAT by project?”	“Yes, I can issue separate invoices for each project.”
“Why does the total differ by a penny?”	“The VAT is rounded once on the total for each rate.”

Handling these questions promptly keeps your customers able to reclaim their VAT without delay, which in turn helps them pay you on time.

Zero-rated, exempt and mixed invoices

When an invoice includes supplies that are zero-rated or exempt, you must make it clear that no VAT is payable on those items and show a separate total for them. You can also issue separate invoices for them, which is sometimes tidier for your records.

Type	Meaning	How to show it
Standard rate	20% VAT charged	Net, rate and VAT amount
Reduced rate	5% VAT charged	Net, rate and VAT amount
Zero-rated	Taxable at 0%	Net, rate shown as 0%, VAT £0.00
Exempt	Not subject to VAT, no recovery	Label “Exempt”, separate total
Outside the scope	Not a supply within the VAT system	Label “Outside the scope of VAT”

If you supply goods from Northern Ireland to a customer in an EU member state and the supply is zero-rated or exempt, the invoice must also show the reason for that. Always check the guidance for your type of supply before choosing a label.

Invoicing in a foreign currency

You can issue a UK VAT invoice in a foreign currency for supplies made in the UK, but the total amount of VAT payable must be shown in sterling. HMRC’s guidance on how to convert applies, so use an acceptable rate and keep a record of the method you used.

Item	Treatment
Net amounts	Can be shown in any currency
Total VAT	Must be shown in sterling
Exchange rate	Use an acceptable method and apply it consistently
Records	Keep the rate and source

For overseas customers, VAT treatment depends on where the customer is and what you supply, so check the rules for exports and services to businesses abroad. The reverse charge, zero rating and place of supply rules can change whether you charge UK VAT at all.

Credit notes and corrections

If you need to correct a VAT invoice, such as a wrong amount or a returned item, you do not edit the original. You issue a credit note, and a replacement invoice if needed. A credit note for VAT purposes should contain the information needed to show what is being corrected: its own number, the date, a clear reference to the original invoice, the reason, the amount credited and the VAT adjusted.

Error	Fix
Wrong VAT rate	Credit note for the original and a new invoice at the correct rate
Wrong amount	Credit note for the difference, or a replacement invoice
Returned goods	Credit note for the goods and VAT
Invoice issued to the wrong customer	Credit note for the original, new invoice to the right customer
VAT charged when not registered	Seek advice from HMRC; do not simply cancel

For the practical steps, see what is a credit note and use the credit note generator.

Sending VAT invoices electronically

You do not need to send paper. Electronic invoices are generally acceptable as VAT invoices, as long as they contain the required details and you keep a copy. A PDF sent by email is the usual approach for small businesses.

Point	Guidance
Format	A PDF is fine, and is hard to alter accidentally
Storage	Keep an exact copy of what you sent, in a form you can retrieve and print
Customer consent	Many businesses accept electronic invoices as a matter of course; some may prefer another format
Integrity	Do not edit a sent invoice; issue a credit note instead
Retention	Keep for the required period in a readable form

If you invoice through software or a generator, check the output against the checklist at the end of this guide. The invoice generator produces a standard PDF layout, and you can add the details yourself. The document is created in your browser and not uploaded.

Keeping records

VAT-registered businesses must keep records of sales and purchases, including copies of the VAT invoices they issue and receive.

Record	Why
Copies of VAT invoices issued	Evidence of output VAT
Purchase invoices received	Evidence for input VAT claims
Credit and debit notes	Adjustments to VAT
VAT account	Summary of VAT due and reclaimed
Import and export documents	Support for zero-rating and import VAT
VAT returns and payments	Proof of filing and payment

VAT records generally need to be kept for six years. You should check HMRC’s current guidance for exceptions. If you are VAT-registered, you must also follow Making Tax Digital rules, which require digital records and submission of VAT returns through compatible software.

Wording for special situations

Some supplies need specific wording so that the customer and HMRC understand what has happened. A few examples follow. Always check the current HMRC guidance for the exact wording and conditions.

Situation	What the invoice should make clear
Zero-rated export	The supply is zero-rated and the rate shown as 0%
Exempt supply	The item is exempt and no VAT is charged
Outside the scope	The item is outside the scope of UK VAT
Reverse charge	That the reverse charge applies and the customer must account for the VAT
Supply to a VAT-registered business in another country	The customer’s VAT number and the reason no UK VAT is charged
Margin schemes	That a margin scheme is used, without showing VAT separately
Partial payment or deposit	The amount received and the balance due

The domestic reverse charge

In some sectors, such as certain construction services, the customer rather than the supplier accounts for the VAT on a supply between VAT-registered businesses. When this applies, your invoice must show that the reverse charge applies and should not include VAT as a charge to the customer. If you work in a sector where this applies, read HMRC’s guidance for your trade, because getting it wrong affects both your VAT return and your customer’s.

Using the flat rate scheme

If you use HMRC’s flat rate scheme, you still show VAT on invoices at the normal rate and the customer pays the normal amount. The flat rate affects only what you pay HMRC, not what you charge or show to customers. Make sure your invoices show the standard VAT rate for the supply, not the flat rate percentage.

Small businesses that are not registered

If you are not VAT-registered, your invoices should not show VAT at all, and should not carry a VAT number. They can still be professional invoices with a description, an amount and payment details, and you can read how to make an invoice for the general layout. If you grow and register later, your invoices will begin to show VAT from the effective date of registration.

When something goes wrong: a short correction guide

Errors on VAT invoices are common and fixable. What matters is that the correction is documented and that your VAT return reflects it.

Problem discovered	Steps
Missing VAT number on an issued invoice	Reissue a corrected invoice, marked as replacing the original, and keep both
VAT calculated at the wrong rate	Issue a credit note for the original and a new invoice at the correct rate
Invoice sent to the wrong customer	Credit the original, reissue to the right customer and tell both
Duplicate invoice	Credit the duplicate with a note explaining the reason
Amount wrong after delivery changes	Credit note for the difference or a replacement invoice
VAT reported in the wrong period	Correct it on your next return, following HMRC’s guidance on errors

Tell the customer promptly, because they may already have claimed the VAT. A short, factual message with the corrected document attached is enough, and it keeps their records and yours aligned.

Common VAT invoice mistakes

Mistake	Why it matters	Fix
Missing VAT registration number	Invoice is not a valid VAT invoice	Always show it
Non-sequential or duplicate numbers	Raises questions in an inspection	Use a controlled sequence
No tax point or date	Unclear VAT period	Show time of supply and issue date
VAT not shown separately	Customer cannot reclaim properly	Show net, rate and VAT
Wrong rate applied	Under- or over-charging	Check the rate for the supply
Zero-rated and exempt items unlabelled	Confusion and errors	Label and total separately
Foreign currency without sterling VAT	Invoice incomplete	Show VAT in sterling
Late invoices	Delays customer’s claim	Issue within 30 days
Editing a sent invoice	Breaks the record	Use credit notes
Charging VAT when not registered	Not permitted	Register first if required

A VAT invoice checklist

Check	Done
Unique sequential number
Time of supply and date of issue
Your name, address and VAT registration number
Customer’s name and address
Description of goods or services
Quantity or extent and unit price
Net amount per VAT rate
VAT rate and VAT amount per rate
Total payable
Cash discount rate, if offered
Total VAT in sterling
Zero-rated and exempt items labelled and totalled separately
Payment details and due date
Copy saved for at least six years

Making a VAT invoice in the invoice generator

The invoice generator lets you add your VAT number as the tax ID, label the tax line as VAT, enter the rate, apply it to the lines and switch between tax-exclusive and tax-inclusive pricing. It shows subtotal, VAT and total clearly and saves a PDF. Because it runs in your browser, nothing is uploaded. Check the output against the checklist above, especially the time of supply and any items that are zero-rated.

For a wider view of what to put on an invoice in any country, read what to include on an invoice, and for the general principles of showing tax, see sales tax on invoices. If you work with customers in Canada or Australia, the equivalent rules are in GST invoice requirements for Canada and Australia.

For a ready-made layout with your tax number, rate and totals, use the free tax invoice template.

This guide is general information based on HMRC’s published VAT guidance at the time of writing and is not tax advice. VAT rules and thresholds change, so check GOV.UK or speak to a qualified adviser for your own situation.