UK VAT invoice requirements: what HMRC expects on every invoice

What a full VAT invoice must show

HMRC requires all of the following on a full VAT invoice:

A unique, sequential number, drawn from one or more series, that identifies the document. Gaps and duplicates are what auditors look for first, so never reuse a number — if you cancel an invoice, keep the number and issue a credit note.

Your business name, address and VAT registration number. The nine-digit number is the field customers most often chase, and without it they cannot reclaim the VAT.

The customer's name and address. For a business customer this should be the registered entity, not just a contact's name.

The date of issue, and the time of supply (the tax point) where it differs from the issue date.

A description sufficient to identify the goods or services supplied.

For each line: the quantity of goods or extent of the services, the unit price, the VAT rate applied, and the amount payable excluding VAT.

The total amount payable excluding VAT, the total VAT chargeable, and the total payable.

The reason for any zero rate or exemption where one applies.

One detail that trips up exporters: if you invoice in a foreign currency you may show the net amounts in that currency, but the total VAT chargeable must also be shown in sterling, converted using an acceptable rate such as HMRC's published monthly rate.

Getting the tax point right

The tax point decides which VAT period the supply falls into, which matters most around a quarter end. The basic tax point is the date the goods are removed or made available, or the date the service is completed.

Two rules override it. If you issue an invoice or receive payment before the basic tax point, that earlier date becomes the tax point. And if you issue the invoice within 14 days after the basic tax point, the invoice date becomes the tax point instead — a rule that quietly does a lot of work in normal trading.

Separately, a VAT-registered business must issue a VAT invoice within 30 days of the tax point. Continuous supplies, deposits and stage payments have their own treatment, so check VAT Notice 700 if you bill on a retainer or against milestones. Keep your VAT records and copies of the invoices you issue for six years.

Rates: 20% standard, and when it isn't

The standard rate of UK VAT is 20%, unchanged since 4 January 2011, and it applies unless a supply specifically falls into another category.

The reduced rate of 5% covers a defined list including domestic fuel and power, children's car seats, and certain mobility aids for older people. The zero rate — 0%, but still a taxable supply — covers most food, books and newspapers, children's clothing and footwear, and public transport. Zero-rated is not the same as exempt: exempt supplies such as insurance, postage stamps, most health services and some education and financial services sit outside the VAT system, and making them can restrict how much input tax you recover.

The boundaries are narrower and stranger than most people expect, and reliefs are amended in Budgets. Do not assume a rate because it feels right — check the current HMRC guidance for your specific goods or services, or ask your accountant. Where you apply a zero rate or an exemption, state the reason on the invoice.

Simplified and modified invoices

For retail supplies where the total including VAT is £250 or less, you can issue a simplified VAT invoice. It needs your name, address and VAT registration number, the time of supply, a description of the goods or services, the total amount including VAT, and the VAT rate applying to each item. You do not need the customer's details or a separate VAT total.

For retail supplies above £250 you can, with the customer's agreement, issue a modified invoice showing VAT-inclusive values for each standard-rated or reduced-rated item, provided the totals still separate out the net, the VAT and the gross.

If in doubt, issue a full invoice — it is always acceptable, and business customers generally prefer it.

If you're not VAT registered

You must not issue a VAT invoice, show a VAT registration number, or add a VAT line if you are not registered. Charging VAT you are not entitled to charge is a serious matter. Your invoice should simply show your name and address, the customer's details, a sequential number, the date, a description, and the total — no VAT column at all.

Registration becomes compulsory once your VAT-taxable turnover crosses the threshold, which has been £90,000 since April 2024, measured on a rolling 12-month basis or expected within the next 30 days alone. Thresholds do change, so verify the current figure on GOV.UK before acting on it. You can also register voluntarily, which is common where your customers are themselves VAT registered and you want to recover input tax.

Crossbill ships both variants as presets: a full UK VAT invoice with the registration number and per-line VAT breakdown, and a clean non-registered layout for sole traders below the threshold. Sequential numbering carries forward automatically, and the whole document is produced in your browser, so nothing you type is uploaded anywhere.

This page is general information, not tax or legal advice. Rates, thresholds and reliefs change — confirm your position with HMRC or a qualified accountant before relying on it.