UK VAT invoice requirements: what to show and when

Who needs to issue one

You must issue a VAT invoice when you make a standard-rated or reduced-rated sale to another VAT-registered business, and when you supply zero-rated goods in certain cases. You do not have to issue VAT invoices for sales to the public, but you must give one if they ask. You cannot show a VAT number or charge VAT unless you are registered. The UK registration threshold is £90,000 of taxable turnover over 12 months at the time of writing; check GOV.UK for the current figure.

What a full VAT invoice shows

1. A unique, sequential invoice number. Gaps should be explained.
2. Your business name and address, and your VAT registration number.
3. The invoice date and the tax point (time of supply) if different.
4. The customer’s name or trading name and address.
5. A description of the goods or services, with quantity or the extent of the services.
6. The unit price or rate, excluding VAT, with any discount.
7. The total amount payable excluding VAT, the VAT rate for each line, the total VAT charged and the total including VAT.
8. If a reduced rate applies, the rate and the amount for each.
9. If foreign currency is used, the VAT total must be shown in pounds sterling.

The UK invoice generator has fields for all of these, and an option to switch between a standard and a simplified layout.

Simplified and modified invoices

For retail supplies of £250 or less including VAT you can issue a simplified invoice. It shows your name, address and VAT number, the date, a description, the total including VAT and the rate for each item. A modified invoice can be used for supplies over £250 to a customer who is not themselves entitled to recover VAT, such as for some retail purposes. GOV.UK sets out the permitted contents.

When to issue it

You normally need to issue a VAT invoice within 30 days of the date of supply or the date you receive payment, depending on the case. If you are paid in advance, the payment can create a tax point and the invoice may be needed sooner. Check the rules for your situation on GOV.UK. See also deposits and milestone billing.

Special cases

• Zero-rated and exempt supplies: show the rate and make clear that no VAT is charged. Exempt supplies do not appear on VAT invoices as taxable.
• Domestic reverse charge: for construction services under the Construction Industry Scheme, the customer accounts for VAT and the invoice must carry a specific note. See reverse charge explained.
• Credit notes: issue them for corrections. See credit notes explained.
• Self-billing: allowed with agreement, with extra requirements.

Keeping records

Most businesses must keep VAT records, including invoices, for 6 years. See how long to keep invoices. From April 2029 the UK government intends to require VAT invoices to be e-invoices. See UK e-invoicing 2029.

Related topics

• VAT invoice UK
• VAT invoice requirements
• simplified VAT invoice
• tax point
• VAT registration number
• HMRC invoice rules
• UK invoice template