VAT Invoice Template (UK): What a Valid VAT Invoice Must Show

Once you are VAT registered, an ordinary invoice is no longer enough when you sell to another VAT-registered business. You have to issue a VAT invoice, and your customer can only reclaim the VAT you charge if the invoice has all the details HMRC asks for. A missing VAT number or a VAT total that is not shown separately is enough for their accountant to send it back.

This page lists everything a valid UK VAT invoice must show, with a worked example, the simpler invoice you can use for sales of £250 or less, and the deadlines and records that go with it.

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Worked example

INVOICE INV-001VAT registered supplier

Description	Qty	Rate	VAT	Net
Kitchen fitting, labour (3 days)	3	£250.00	20%	£750.00
Oak worktop, supplied and cut to size	1	£400.00	20%	£400.00

Total excluding VAT£1,150.00

VAT at 20%£230.00

Total including VAT£1,380.00

Shows the supplier’s VAT number, the customer’s name and address, the tax point (date of supply) and the invoice date. This example is for a homeowner; between two VAT-registered construction businesses in CIS, the reverse charge would usually apply instead.

What a VAT invoice must show

HMRC’s record keeping notice (VAT Notice 700/21) lists the details every full VAT invoice must include:

a sequential number that identifies the invoice uniquely
the time of supply, also called the tax point
the date of issue, if it is different from the time of supply
your name, address and VAT registration number
the name and address of the customer
a description of the goods or services, clear enough to identify them
for each line: the quantity or extent of the service, the VAT rate and the amount excluding VAT
the total excluding VAT
the rate of any cash discount offered
the total VAT, in pounds sterling
the unit price

Most of these are already on a well-made invoice. The ones people forget are the VAT number, the tax point and the VAT rate on each line.

When you must issue one, and how fast

If you are VAT registered, you must issue a VAT invoice whenever you supply standard-rated or reduced-rated goods or services to another VAT-registered person. Normally it must be issued within 30 days of the supply.

The date matters for your VAT return, too. The tax point is usually the date of the invoice, but if you issue the invoice 15 days or more after the work is finished, the tax point goes back to the date of supply. For services, that is the date the work was finished; for goods, the date they were sent, collected or made available. If you are on the Cash Accounting Scheme, the tax point is the date you are paid.

The simplified invoice for £250 or less

If the total of a sale is £250 or less including VAT, you can issue a simplified VAT invoice instead. It needs less detail:

your name, address and VAT registration number
the time of supply (tax point)
a description that identifies what was supplied
for each VAT rate, the total amount including VAT, and the rate charged

Exempt supplies cannot go on a simplified invoice. Above £250, you must use a full VAT invoice, or a modified VAT invoice that shows VAT-inclusive values.

The three VAT rates on a UK invoice

Most goods and services are standard-rated at 20%. Some are reduced-rated at 5%, for example domestic fuel or power, and some are zero-rated, which still counts as a VAT supply but at 0% (exports are the usual example). Each line of your invoice shows its own rate, so a single invoice can mix rates.

Exempt and out-of-scope items are different from zero-rated ones: no VAT is charged and they do not belong on a simplified invoice. If you are not sure which rate applies, check HMRC’s list of rates for different goods and services before you invoice.

Pro forma invoices and quotes are not VAT invoices

A pro forma invoice asks for payment before you supply, and a quote gives a price. Neither is a VAT invoice, and HMRC is clear that your customer cannot reclaim VAT using a pro forma invoice, a statement or a delivery note. When the work is done or paid for, send a proper VAT invoice.

If you get something wrong on a VAT invoice, do not edit the original. Issue a credit note (or a replacement invoice) that shows the same information as the VAT invoice, why it was issued, the amount credited excluding VAT, and the number and date of the original invoice.

Keep copies for six years

You must keep a copy of every sales invoice you issue, including ones you cancel or produce by mistake, and all purchase invoices, for at least 6 years. Most VAT-registered businesses must also keep their VAT records digitally under Making Tax Digital for VAT.

The Invoice Maker keeps every invoice in your account with its number, so the sequence has no gaps and you can download any invoice again as a PDF.

How the Invoice Maker handles VAT

Add your VAT number to your business profile and every invoice becomes a VAT invoice: each line gets its own rate (20%, 5%, 0% or exempt), the VAT is added up per rate and shown separately, and your VAT number is printed on the invoice. Numbers go up in order with no repeats, in the format you choose.

If you work in construction and supply another VAT-registered business in CIS, tick the reverse charge box and the invoice shows the VAT without adding it to the total, with the wording HMRC expects.

Frequently asked questions

Can I issue a VAT invoice if I am not VAT registered?

No. Only VAT-registered businesses can issue VAT invoices or charge VAT. If you are not registered, your invoice simply shows no VAT.

When do I have to register for VAT?

When your taxable turnover goes over £90,000 in the last 12 months, or you expect it to go over £90,000 in the next 30 days (the threshold on GOV.UK in September 2026). You can also register voluntarily below it.

Do I need a VAT invoice for sales to the public?

You must issue one for sales to other VAT-registered businesses. For retail sales to people who are not VAT registered there is no requirement unless the customer asks for one.

How long must I keep VAT invoices?

At least 6 years, including copies of invoices you cancelled or issued by mistake.

Do I need an account to use the template?

No. Start the invoice on the Invoice Maker page straight away. To download, email or keep it, create a free TaxEase UK account, which includes 5 invoices a month.