A VAT invoice is a bill that shows the VAT on a sale. Only VAT registered businesses can issue one. The invoice must show set details, because your customer needs them to reclaim the VAT.
What a full VAT invoice must show
A full VAT invoice needs all of these:
- A unique invoice number
- Your business name and address
- Your VAT registration number
- The invoice date
- The date of supply, if it differs from the invoice date
- The customer’s name and address
- A description of the goods or services
- The quantity of each item
- The rate of VAT for each item
- The amount before VAT for each item
- The total amount before VAT
- The VAT amount
- The total amount including VAT
[ Infographic: Parts of a valid VAT invoice ]
Brief: a sample invoice with each required field labelled, from the invoice number to the VAT amount.
Alt text: A sample VAT invoice with the required fields labelled, including VAT number, rate and VAT amount.
Caption: Every field a full VAT invoice needs.
The simplified invoice rule
For sales up to £250 including VAT, you can issue a simplified invoice. It needs less detail:
- Your business name and address
- Your VAT registration number
- The date
- A description of the goods or services
- The rate of VAT for each item
- The total amount including VAT
This is why a till receipt from a shop can still support a VAT claim on a small purchase. Above £250 you need a full VAT invoice.
Why a valid invoice matters
To reclaim VAT on a purchase, you need a valid VAT invoice. A card receipt, a statement, a quote or a proforma invoice is not enough on its own. If your paperwork does not meet the rules, HMRC can refuse the claim.
So when you buy something larger from a new supplier, check the invoice shows a real VAT number and the required details. You can confirm the number with a VAT number checker.
What a VAT invoice is not
- A proforma invoice. This is a draft and does not count for reclaiming VAT.
- A simple receipt above £250. This needs to be a full VAT invoice.
- A quote or an order confirmation. These are not invoices.
Frequently asked questions
What must a VAT invoice include? A unique number, your name, address and VAT number, the date, the customer details, a description, the VAT rate, the net amount, the VAT amount and the total.
What is a simplified VAT invoice? A shorter invoice allowed for sales up to £250 including VAT. It needs your VAT number, the date, a description, the VAT rate and the total.
Is a receipt a valid VAT invoice? For small sales up to £250 a receipt with the right details can count. Above £250 you need a full VAT invoice.
Can I reclaim VAT without a VAT invoice? Usually no. You need a valid VAT invoice to reclaim the VAT on a purchase.
Who can issue a VAT invoice? Only a VAT registered business can issue a VAT invoice.