Who issues VAT invoices
Only VAT-registered businesses can issue VAT invoices, and you must register for VAT before you start charging it. If you are not registered, you cannot charge VAT, so your invoices do not show any.
If you are registered, you must issue a VAT invoice whenever you supply standard-rated or reduced-rated goods or services to another VAT-registered business. You do not have to issue one for zero-rated supplies, or to customers who are not registered. HMRC notes that in practice you will usually issue one to any customer who asks, because you often cannot tell whether they are registered. You do not have to check.
The time limit
Normally you must issue a VAT invoice within 30 days of the date of the supply (the tax point). HMRC allows some extensions, for example while you wait for invoices from your own suppliers. For anything else, you have to ask HMRC in writing.
What a full VAT invoice must show
- a sequential number, based on one or more series, that identifies the invoice uniquely
- the time of supply (tax point)
- the date of issue, if it is different from the time of supply
- your name, address and VAT registration number
- your customer's name and address
- a description that identifies the goods or services
- for each description, the quantity of goods or the extent of the services, the VAT rate and the amount before VAT
- the unit price
- the total before VAT
- the rate of any cash discount you offer
- the total VAT, in pounds sterling
You can invoice under a trading name, as long as the name and address you are registered under appear somewhere on the invoice. The unit price applies to things you can count, such as an hourly rate. You may leave it out if your sector does not normally show it and the customer does not ask for it.
If a VAT invoice includes zero-rated or exempt items, they must show clearly that no VAT is payable, with a separate total for their value. Margin schemes and the reverse charge have their own invoice rules.
Simplified invoices, up to £250
If a supply is £250 or less including VAT, you can issue a simplified invoice. It must show:
- your name, address and VAT registration number
- the time of supply (tax point)
- a description that identifies the goods or services
- for each VAT rate, the total amount payable including VAT, in sterling, and the VAT rate charged
Exempt supplies cannot go on a simplified invoice. As an example, a sale of £240.00 including 20% VAT contains £40.00 of VAT. A simplified invoice for it shows the £240.00 total including VAT and the 20% rate.
Modified invoices, above £250
Above £250, if you are asked for a VAT invoice, it must be either a full VAT invoice or a modified VAT invoice. A modified invoice shows VAT-inclusive values rather than VAT-exclusive ones.
Invoicing in another currency or language
The line amounts and the total before VAT can be in any currency. The total VAT must be shown in sterling. HMRC says to convert at the UK market selling rate at the time of supply, or at HMRC's published period rate if you choose to use those for your supplies. Other rates need HMRC's written agreement.
You can write invoices in a language other than English, but you must be able to give HMRC an English translation within 30 days if an officer asks.
Pro-forma invoices and credit notes
A pro-forma invoice cannot be used to reclaim VAT, even if it shows every detail above. HMRC says to mark it “this is not a VAT invoice”. Once you supply the goods or services, or are paid, issue a proper VAT invoice.
To correct a genuine mistake or overcharge, or an agreed reduction in price, you can issue a credit note. To be valid for VAT, it must be issued within 14 days of the refund being paid to the customer, and it must show:
- its own identifying number and date of issue
- your name, address and VAT registration number
- your customer's name and address
- a description of the goods or services being credited
- the quantity and amount for each description
- the total credited before VAT
- the rate and amount of VAT credited, in sterling
- the number and date of the original VAT invoice
Keeping records
Keep a copy of every VAT invoice you issue, even ones you cancel or produce by mistake. You must keep VAT records for at least 6 years, or 10 years if you use the VAT One Stop Shop or used the Mini One Stop Shop.
Checklist before you send it
- You are VAT-registered, and your VAT number is on the invoice.
- The invoice number follows on from the last one and has not been used before.
- The tax point is shown, and the issue date too if it is different.
- Your name and address are the ones you are registered under, and your customer's name and address are there.
- Each line has a description, quantity, unit price, VAT rate and amount before VAT.
- Zero-rated or exempt lines show no VAT and have their own total.
- The invoice shows the total before VAT, any cash discount rate, and the total VAT in sterling.
- You are sending it within 30 days of the supply.
- You have kept a copy.
Make the invoice
The invoice generator makes a general invoice, not a VAT invoice. Put your VAT number in the tax registration field, “VAT” and the rate in the tax fields, and check it shows every detail above before you send it as a VAT invoice. It uses one tax rate for the whole invoice and has no tax point field. If the tax point is not the invoice date, add it in the notes. Put zero-rated or exempt items on a separate invoice. If you invoice in another currency, add the total VAT in sterling in the notes. The UK VAT calculator works out the VAT on an amount.
Sources
- HMRC: Record keeping (VAT Notice 700/21), sections 2 to 4 (updated 18 March 2024)
- HMRC: The VAT guide (VAT Notice 700), sections 7.6, 16, 17.3 and 18.2 (updated 25 June 2026)
- GOV.UK: Charge, reclaim and record VAT, keeping VAT records (updated 30 October 2024)
- GOV.UK: Charge, reclaim and record VAT, charging VAT (updated 30 October 2024)