VAT Invoices

Key facts

You must issue a VAT invoice when you sell to another VAT-registered business.
A full VAT invoice has specific required fields set by HMRC.
A simplified invoice can be used for sales under £250 (including VAT).
Without a valid VAT invoice, your customer cannot reclaim the VAT.

When Must You Issue a VAT Invoice?

You must issue a VAT invoice within 30 days of the date of supply (or the date of payment if earlier) when you supply goods or services to another VAT-registered business.^[1]

You don’t need to issue a VAT invoice for exempt supplies or to customers who aren’t VAT-registered (though you can if you wish).

What Must a Full VAT Invoice Include?

A full VAT invoice must show:^[1]

A unique invoice number (sequential)
Your business name and address
Your VAT registration number
The date of issue
The tax point (date of supply) if different from the invoice date
The customer’s name and address
A description of the goods or services
The quantity of each item
The unit price (excluding VAT)
The rate of VAT for each item
The total amount excluding VAT
The total VAT amount
The total amount including VAT
Any discount offered

Simplified VAT Invoices

For sales of £250 or less (including VAT), you can issue a simplified invoice that only needs:^[1]

Your name and address
Your VAT registration number
The date of supply
A description of the goods or services
The total amount including VAT
The VAT rate(s) applicable

Tip: Retailers often issue simplified invoices (e.g. till receipts showing the VAT number and rate). These are valid for reclaiming input VAT on small purchases.

Modified VAT Invoices

For sales over £250, a modified invoice can be used for retail transactions. It contains the same information as a full invoice but shows VAT-inclusive prices rather than separate VAT amounts.

Electronic Invoices

Electronic invoices (PDFs, emails, invoicing software) are fully acceptable. They must contain the same information as paper invoices and be stored in a way that HMRC can access.^[3]

VAT Credit Notes

If you need to reduce the amount charged on a previous invoice (e.g. for a return or discount), you issue a credit note. It must reference the original invoice and show the VAT adjustment.

Common Mistakes

Missing the VAT registration number (your customer can’t reclaim)
Wrong VAT rate applied
No invoice number or duplicate numbers
Issuing a VAT invoice when you’re not VAT-registered (this is illegal)

Frequently Asked Questions

What must a VAT invoice include?

A full VAT invoice must include a unique invoice number, your business name and VAT number, the date of issue, the customer’s name and address, a description of goods or services, unit prices, VAT rates, and the total amounts excluding and including VAT.

When can I use a simplified VAT invoice?

You can issue a simplified VAT invoice for sales of £250 or less including VAT. It requires fewer details — just your name, address, VAT number, date, description, total including VAT, and the VAT rate.

Do I have to issue a VAT invoice for every sale?

You must issue a VAT invoice within 30 days when you supply goods or services to another VAT-registered business. You do not need to issue one for exempt supplies or to non-VAT-registered customers.

Can I issue electronic VAT invoices?

Yes. Electronic invoices such as PDFs, emails, or invoices generated by accounting software are fully acceptable, provided they contain the same information as paper invoices and can be accessed by HMRC.

Sources

VAT invoices — GOV.UK
VAT guide (VAT Notice 700) — GOV.UK
Record keeping (VAT Notice 700/21) — GOV.UK