VAT Invoice Requirements in the UK: Full, Simplified and Modified

If you're VAT-registered in the UK, your invoices to VAT-registered customers must meet HMRC's rules. It's not just paperwork: a business customer generally needs a valid VAT invoice to reclaim the VAT you charged them. If your invoice is missing required details, you'll hear about it from their accounts team.

This guide follows HMRC's VAT Notice 700/21 (record keeping). Rules can change, so check GOV.UK for the current version.

Who needs to issue VAT invoices

You must issue a VAT invoice when you're VAT-registered and you make a standard-rated or reduced-rated supply to another VAT-registered business. You don't have to issue one to a consumer who isn't VAT-registered, unless they ask, though many businesses do anyway.

You only charge VAT once you're registered. Registration is compulsory once your taxable turnover in the previous 12 months goes over £90,000, or if you expect it to in the next 30 days alone. You can register voluntarily below that.

What a full VAT invoice must show

According to HMRC, a full VAT invoice must include:

1. A unique, sequential invoice number
2. The time of supply (tax point), and the invoice date if different
3. Your business name and address
4. Your VAT registration number
5. The customer's name (or trading name) and address
6. A description sufficient to identify the goods or services
7. For each item: the quantity, the unit price excluding VAT, the VAT rate and the amount payable excluding VAT
8. The total amount payable excluding VAT
9. The rate of any cash discount offered
10. The total amount of VAT charged, in sterling

If you invoice in a foreign currency, the VAT total still has to be shown in sterling.

Example line layout

Description	Qty	Unit price (ex VAT)	VAT rate	Amount (ex VAT)
Bookkeeping, August 2026	1	£450.00	20%	£450.00
Payroll run, 6 employees	6	£12.00	20%	£72.00
Total excluding VAT				£522.00
VAT at 20%				£104.40
Total payable				£626.40

In the generator, set the tax name to "VAT", choose "Per line" tax if you have items at different rates (20%, 5%, 0%), set the tax number type to "VAT no." and add your VAT number.

Simplified VAT invoices (£250 or less)

For retail supplies of £250 or less including VAT, you can issue a simplified invoice showing:

• Your business name and address
• Your VAT registration number
• The time of supply
• A description of the goods or services
• The total payable including VAT
• The VAT rate charged (for each rate, if more than one)

You can't use a simplified invoice for exempt supplies, and if the customer asks for a full VAT invoice, you should provide one.

Modified invoices

For retail supplies over £250, you can issue a modified invoice showing VAT-inclusive values for each item, as long as the customer agrees and the invoice shows the totals excluding VAT and the VAT itself.

Deadlines

You must normally issue a VAT invoice within 30 days of the date of supply (or of receiving payment, if you're paid in advance). Advance payments can create a tax point, so a deposit can mean a VAT invoice for the deposit amount.

Special cases

• Zero-rated and exempt items: show them separately and indicate the rate (0%) or that they're exempt.
• Reverse charge: for certain services (including building and construction under the domestic reverse charge), the invoice must state that the reverse charge applies and the customer accounts for the VAT. The invoice should include the words "Reverse charge" and the relevant reference.
• Selling to overseas business customers: services to business customers outside the UK are often outside the scope of UK VAT under the place-of-supply rules. See invoicing international clients.
• Credit notes: to correct a VAT invoice, issue a credit note that references the original invoice number and shows the VAT being adjusted. See credit notes.

Common mistakes

• Missing VAT number. The single most common reason invoices are rejected.
• Total VAT not shown. Showing only the VAT-inclusive total isn't enough on a full invoice.
• Customer's name missing on a full invoice.
• Charging VAT before registering. You can't, and you can't reclaim it retrospectively from the customer's side.
• Not charging VAT after registration because you forgot to update the template. You'll owe it anyway.

Keeping VAT invoices

You must keep copies of the VAT invoices you issue and receive, usually for six years. If you're under Making Tax Digital for VAT (which now covers all VAT-registered businesses), you'll also need to keep digital records and file returns through compatible software. More in how long to keep invoices.

This is general guidance. For your specific situation, check HMRC's guidance or speak to an accountant.