What You Need To Include In Your VAT Invoices

If you are registered for VAT then, unless you are a retail shop, you must issue a VAT invoice each and every time that you make a supply. Each invoice must contain certain information by law. We have recently come across a number of cases where invoices have been raised with incomplete information, so we thought that a brief reminder of the requirements may be in order.

The information that a VAT invoice must show is as follows:

  • A unique invoice number which follows on from the number of the previous invoice. This is a relatively new legal requirement, so you may not be aware of this. if you spoil or cancel a serially numbered invoice, you must keep it as part of your VAT records.
  • your name or trading name, and address
  • your VAT registration number
  • the invoice date
  • the time of supply or tax point if it is not the same as the invoice number. The rules determining the tax point are fairly complex, but in most circumstances it is the earliest of the supply of goods (if more than 14 days before the raising of the invoice), receipt of money , or raising of the invoice
  • your customer’s name or trading name, and address
  • a description of the goods or services supplied
  • any cash discount
  • the total amount of VAT charged

For each different type of goods or service included on the invoice, you must show:

  • the unit price or rate, excluding VAT
  • the quantity of goods or the extent of the services
  • the rate of VAT that applies to what’s being sold
  • the total amount payable, excluding VAT

If the invoice includes zero-rated or exempt goods or services, you must:

  • show clearly that there is no VAT payable on those goods or services

A VAT invoice can be either in paper or electronic form. However, statements, orders, delivery notes, general correspondence or a purported invoice which states “this is not a tax invoice” does not count.