VAT Invoices

VAT Invoice Deadline

The legal requirement for a VAT registered business to provide an invoice within 30 days of a sale.

Purpose for the Supplier

Acts as evidence that VAT has been collected on a sale and is owed to HMRC.

Purpose for the Customer

Provides evidence that VAT has been paid; if the customer is VAT registered, they can use it to reclaim the tax from HMRC.

Unique Invoice Number

A compulsory item on a VAT invoice that must follow on sequentially from the previous number.

Seller Information Requirements

The VAT invoice must show the seller's name or trading name, address, and VAT registration number.

Tax Point

The time of supply which must be shown on the invoice if it differs from the invoice date.

Customer Details Requirement

A full VAT invoice must include the customer's name or trading name and their address.

Pro-forma Invoice

An invoice used to invite a buyer to send payment before goods are shipped; it cannot be used to reclaim VAT.

Goods/Services Description

A description enabling the customer to identify what is being charged for on the invoice.

Total Amount Payable (Excluding VAT)

The sum of all items on the invoice before the tax is added.

Total VAT Charged

The final amount of tax calculated and shown separately on a full VAT invoice.

Unit Price/Rate

The specific cost per item or hour (for services) excluding VAT that must be listed on the invoice.

Quantity of Goods

The number of items or extent of services provided that must be explicitly stated on the document.

Exempt or Zero-Rated Items

The invoice must clearly show if no VAT is charged on these specific types of supplies.

Simplified Invoice Condition

A less detailed invoice that can be provided if the total value is £250 or less.

VAT Receipt

A document showing details of VAT paid, rate per item, and the name, address, and VAT number of the supplier.

Basic Tax Point

The date the goods or services are actually supplied to the customer.

Actual Tax Point (Standard Rule)

The date the invoice is issued, provided it is within 14 days of the basic tax point.

Prompt Payment Discount (PPD) Statement

A required statement on an invoice if a discount is offered, notifying the customer to only reclaim the VAT actually paid.

Trade Discount Calculation

VAT is charged on the sales value after this type of discount has been applied to the goods total.