UK VAT Invoice: What It Must Include (Free Template)
Updated
If your business is registered for VAT in the UK, the invoices you send to VAT-registered customers must be valid VAT invoices, with specific details HMRC requires. Get them wrong and your customer may not be able to reclaim the VAT. This guide lists exactly what a UK VAT invoice must show, explains full and simplified VAT invoices, and walks through an example.
What a full UK VAT invoice must show
- A unique invoice number that follows on from the last one
- Your business name and address
- Your VAT registration number
- The invoice date
- The time of supply (tax point), if different from the invoice date
- Your customer's name or trading name, and address
- A description of the goods or services
- For each item: the quantity, unit price excluding VAT, any discount, and the VAT rate
- The total amount excluding VAT
- The total amount of VAT
Source: HMRC's rules on VAT invoices. Always check GOV.UK VAT Notice 700/21 for the latest requirements.
Who needs to issue VAT invoices
You must issue VAT invoices if you are registered for VAT and you sell to other VAT-registered businesses. You don't have to issue one to consumers or other customers who aren't VAT registered, though you can if they ask.
If you're not VAT registered, for example a sole trader below the registration threshold, you must not charge VAT or show a VAT number. Just send a normal invoice. Read how to make an invoice for what to include.
Limited companies must show their registered company name on invoices, and most also add their company number and registered office address.
Full, simplified and modified VAT invoices
| Type | When you can use it | What's different |
|---|---|---|
| Full | Any sale. The standard for business customers. | Shows every item on HMRC's list, including the customer's details and the VAT total. |
| Simplified | Retailers, for sales of £250 or less including VAT | No customer details needed. Shows the total including VAT and the VAT rate for each item. |
| Modified | Retailers, for sales over £250, if the customer agrees | Shows amounts including VAT, plus the totals excluding VAT and the VAT amount at the bottom. |
A simplified VAT invoice must show: a unique invoice number, your name and address, your VAT number, the time of supply, a description of the goods or services, the total payable including VAT and, for each item, the VAT rate charged.
UK VAT rates
- Standard rate, 20%: most goods and services.
- Reduced rate, 5%: some goods and services, for example domestic energy and children's car seats.
- Zero rate, 0%: for example most food and children's clothes. Zero-rated sales are still VAT-taxable, at 0%.
- Exempt and outside the scope of VAT: no VAT is charged, for example on some insurance, finance and education.
If an invoice includes items at different rates, show the rate for each item and the VAT for each rate. If a sale is zero-rated or exempt, make that clear on the invoice. HMRC publishes the rates for different goods and services.
UK VAT invoice example
A VAT-registered joiner invoices a café for a new counter, shelving and installation, all at the standard 20% rate:
Oakfield Joinery
22 Mill Lane, Leeds LS1 4AB
[email protected]
VAT Reg No: GB 999 9999 73
VAT INVOICE
# 0153
Bill To:
Brightside Café Ltd
5 Stonegate, York YO1 8AS
| Item | Quantity | Rate | Amount |
|---|---|---|---|
| Bespoke oak serving counter (VAT 20%) | 1 | £2,400.00 | £2,400.00 |
| Wall shelving units (VAT 20%) | 4 | £180.00 | £720.00 |
| Installation, hours (VAT 20%) | 12 | £45.00 | £540.00 |
Notes:
Prices exclude VAT. Please pay by bank transfer within 30 days, quoting invoice 0153. Thank you!
- Subtotal:
- £3,660.00
- VAT (20%):
- £732.00
- Total:
- £4,392.00
- Balance Due:
- £4,392.00
It has every item on HMRC's list: a sequential number, the supplier's name, address and VAT number, the invoice date and a separate tax point (the work was finished two days before invoicing), the customer's name and address, each item's quantity, price excluding VAT and VAT rate, the total excluding VAT (£3,660.00) and the VAT total (£732.00).
How to make a VAT invoice with invoices.net
-
Add your VAT number
Type your business name, address and VAT registration number (and your company details if you're a limited company) in the From box at the top.
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Choose GBP and rename the labels
Pick GBP (£) from the Currency menu. Click the title to change it to VAT INVOICE or TAX INVOICE, and rename Tax to VAT. Every label on the template is editable.
-
Add the tax point if it's different
If the supply happened on a different date from the invoice, rename an unused field such as PO Number to Tax Point and enter the date.
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Enter prices excluding VAT
Add each item with its quantity and unit price excluding VAT, then add VAT at 20% (or the rate that applies). The VAT total and the total including VAT are calculated for you.
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Download and keep a copy
Download the PDF, send it within 30 days of the tax point, and keep a copy for at least 6 years. With a free account, every invoice is saved and can be exported to a spreadsheet.
Special cases
- Invoicing in a foreign currency. You can, but show the total VAT in pounds sterling as well.
- Discounts. VAT is charged on the discounted price. Show the discount rate and the price after the discount.
- Reverse charge. For some services, including many construction services under the domestic reverse charge, the customer accounts for the VAT. The invoice shows the VAT rate and amount but tells the customer to pay the VAT to HMRC, with a note such as "Reverse charge: customer to account to HMRC for the VAT".
- Deposits and advance payments. A payment received before the supply creates a tax point, so issue a VAT invoice for it. A proforma invoice doesn't count.
- Credit notes. To correct or refund a VAT invoice, issue a credit note showing the VAT being credited, rather than editing the original invoice.
This guide is general information, not tax advice. For your situation, check GOV.UK or speak to an accountant.
Frequently asked questions
Do I need to issue VAT invoices if I'm not VAT registered?
No. If you are not registered for VAT you cannot charge VAT, and your invoices must not show VAT or a VAT number. You still send normal invoices to get paid.
When must I issue a VAT invoice?
If you are VAT registered, you must usually give a VAT invoice to VAT-registered customers within 30 days of the date of supply (the tax point), or of receiving payment if you were paid in advance.
Do I have to give a VAT invoice to consumers?
No. You only have to issue VAT invoices to customers who are VAT registered. You can still give consumers a VAT invoice or receipt if they ask.
What is the difference between a full and a simplified VAT invoice?
A full VAT invoice shows all the details HMRC lists, including the customer's name and address and the VAT amount. A simplified VAT invoice can be used by retailers for sales of £250 or less including VAT, and needs fewer details: no customer details, and only the total including VAT with the VAT rate.
Can I issue a VAT invoice in euros or dollars?
Yes, you can invoice in another currency, but the total VAT must also be shown in pounds sterling, using an exchange rate HMRC accepts.
How long do I need to keep VAT invoices?
You must normally keep VAT records, including copies of the invoices you issue and receive, for at least 6 years.
What is the VAT registration threshold?
You must register for VAT when your VAT-taxable turnover goes over the threshold in any rolling 12-month period, £90,000 at the time of writing. You can also register voluntarily below it. Check GOV.UK for the current figure.
Is a proforma invoice a VAT invoice?
No. A proforma invoice is not a VAT invoice and your customer cannot use it to reclaim VAT. Mark it clearly as a proforma and issue a proper VAT invoice once the sale goes ahead.
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