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BUSINESS TIPS

What is a VAT Invoice

VAT registered businesses (often called traders) will usually issue VAT invoices when a sale is completed.  This is not compulsory in all cases, but usually issued.  A VAT invoice is usually issued within 30 days of the supply.

A VAT invoice is legal confirmation of a VAT charge made.  Traders are not able to recover VAT unless they obtain a VAT invoice.  HMRC have specific VAT requirements in relation to VAT invoices.  Specifically VAT invoices will usually include:

  • An identity number (usually an invoice number)
  • Your full name, address and VAT registration number
  • Date of supply
  • Date of invoice (if different from date of supply)
  • The customers full name and address
  • The customers VAT number (if in the EU but outside the UK)
  • Type of supply (eg sale or rental)
  • A description identifying the goods and services you are supplying, including:
  • The quantity of goods or extent of services
  • Charge excluding VAT
  • The rate of VAT applicable
  • The total charge including VAT
  • The rate of any discount offered
  • The total amount of VAT charged shown in £’s sterling.