VAT Invoice Requirements: What Must Be Included

Why VAT Invoices Matter

A VAT invoice isn't just a payment request — it's a legal document. Your customers need valid VAT invoices to reclaim the input VAT you've charged them. If your invoice doesn't meet HMRC's requirements, your customer's VAT reclaim could be rejected.

Getting your VAT invoices right from the start protects both you and your customers.

Full VAT Invoice Requirements

For supplies over £250, a full VAT invoice must include all of the following:

1. A unique invoice number — sequential numbering, no duplicates
2. Your business name and address
3. Your VAT registration number
4. The invoice date
5. The date of supply (or tax point) if different from the invoice date
6. Your customer's name and address
7. A description of the goods or services supplied
8. The quantity of goods or extent of services
9. The unit price (excluding VAT)
10. The rate of VAT charged (20%, 5%, or 0%)
11. The total amount of VAT charged
12. The total amount payable (including VAT)
13. The rate of any discount offered

If you charge different VAT rates on the same invoice (e.g., some items at 20% and others at 0%), each rate must be shown separately with the total for each.

Simplified VAT Invoices

For supplies of £250 or less (including VAT), you can issue a simplified invoice with fewer details:

1. Your business name and address
2. Your VAT registration number
3. The invoice date
4. A description of the goods or services
5. The total amount payable including VAT
6. The VAT rate(s) applicable

You don't need to include the customer's name and address, a unique invoice number, or separate VAT amounts on a simplified invoice.

Note: A till receipt from a VAT-registered business can serve as a simplified VAT invoice if it shows the supplier's VAT number and the total including VAT.

Modified VAT Invoices

For supplies over £250 to retailers, you can issue a modified invoice that shows VAT-inclusive prices rather than listing the VAT separately. The total VAT must still be shown.

Electronic Invoices

Electronic invoices (PDFs, emails, invoices from accounting software) are fully valid as VAT invoices provided they contain all the required information. There's no requirement for paper invoices.

Common Mistakes

Missing VAT registration number. Without this, your customer can't verify you're VAT-registered and may be unable to reclaim the VAT.

No unique invoice number. HMRC requires each invoice to be uniquely identifiable. Duplicate numbers create problems during audits.

Wrong tax point. The date of supply determines which VAT period the transaction falls into. Getting this wrong affects both your return and your customer's.

Not showing VAT separately. On full invoices, the VAT amount must be shown. Your customer needs this figure for their VAT return.

Missing customer details. For invoices over £250, the customer's name and address are required.

Self-Billing

In some arrangements, the customer issues the invoice on your behalf (self-billing). This requires a written agreement between you and the customer and must meet specific HMRC conditions.

With Accounted, Penny generates fully compliant VAT invoices with all required details, sequential numbering, and correct tax points — ensuring you and your customers are always covered.

Issue perfect VAT invoices every time. Start your free trial with Accounted and let Penny handle your invoicing.