If your business is VAT registered, then whenever you supply taxable (standard or reduced rated) or a mixture of standard, reduced, zero rated or exempt goods or services to another VAT registered business, you must provide a VAT invoice. A VAT registered customer must have a valid VAT invoice from their supplier in order to claim back the VAT on the goods or services which have been purchased.
VAT invoices can be issued in two formats:
Both versions must include the required information as listed above.
Electronic invoices can be issued through an online billing system or sent as an attachment by email. More businesses are opting to use electronic systems over paper as it quicker, cheaper and reduces the need for filing space.
We've prepared an VAT invoice Excel template for you to use.
The template is fully editable, allowing you to customise it with your company logo and details.
Remember to keep a record of all the invoices you send out, along with details of received payments.
Click on the button below to download a copy.
VAT invoice.xlsx36.62 KB
When most retail sales are made the customer cannot recover the VAT charged and the retailer is not required to provide a VAT invoice, unless the customer asks for one. Depending on the value of the goods being sold you will issue either a simplified or modified invoice. Simplified invoices contain less information than is required on a full VAT invoice.
£250 or less
If the retail sale is for £250 (including VAT) or less, and there are no exempt items, a simplified invoice can be issued.Find out more
£250 or more
If the retail sale is for more than £250 (including VAT), or it includes exempt items, a full invoice must be issued, unless the customer agrees to accept a modified invoice.Find out more
You don’t need to issue a VAT invoice if:
There are different rules for invoicing if you use a VAT margin scheme; further information is available at https://www.gov.uk/vat-margin-schemes/keeping-records.
Find out more about VAT invoices and discounts. This tutorial shows:
Click on the Start button below to view.
If you issue VAT invoices in a foreign currency or language you must:
To convert to sterling you can:
There are different rules if you use the Tour Operator’s Scheme.
For further details go to https://www.gov.uk/vat-record-keeping/vat-invoices
A VAT registered business must keep certain records, otherwise a financial penalty could be incurred. These records will vary from business to business.Read more
More information on VAT invoices can be found on the Gov.UK website. Click on the Read more link below.Read more
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