What needs to be on a VAT invoice

A VAT invoice includes all the information HMRC requires and can only be issued by a VAT-registered business.

What must a VAT invoice include?

HMRC requires that it must include a unique sequential identifying number, date of the supply (tax point), date of issue (if different), business name, address and VAT registration number and the name and address of the customer.

A description of the goods or services is mandatory, including the quantity of goods or extent of services; the unit price where measurable; the rate of VAT and the amount payable, excluding VAT.

Also needed is the gross total amount payable (excluding VAT), the rate of any cash discount offered, the total amount of VAT chargeable and the reason for any zero rate or exemption.

Separate Invoices

When making both VAT-exempt and taxable supplies to the same customer it is acceptable to issue either separate invoices or a single invoice, provided it clearly shows the VAT treatment for each supply. It is the supplier’s choice as to how invoices are raised and can be decided on a case-by-case basis.

When must a VAT invoice be issued?

An invoice may be issued promptly, especially where payment and supply are simultaneous, but delayed invoicing may also be desirable, eg to allow monthly print run for invoices.

The tax point is the date goods are available to the buyer or when a service has been completed. The tax point is brought forward if the invoice is issued or payment received before this point. It can be delayed in some circumstances.

The tax point determines which VAT return or accounting period the invoice falls within.

An invoice must be issued to the customer within 30 days of the tax point. Occasionally this can be extended, notably when a new VAT registration number is being awaited. 

Please talk to Michaela Johns, Director at HWB, (pictured above) for assistance with your VAT return preparation.

023 8046 1256

michaela.johns@hwb-accountants.com