What a UK VAT invoice must include
If you are registered for VAT and you sell to another VAT-registered business, you normally have to issue a VAT invoice, usually within 30 days of the supply. HMRC's record-keeping guidance (VAT Notice 700/21) says a full VAT invoice must show:
- A unique, sequential invoice number (see how to number invoices)
- The time of supply (tax point) and the date of issue, if different
- Your name, address and VAT registration number
- Your customer's name and address
- A description sufficient to identify the goods or services
- For each line: the quantity or extent of the service, the unit price, the rate of VAT and the amount excluding VAT
- The total excluding VAT (in any currency)
- The rate of any cash discount offered
- The total VAT charged, expressed in sterling
Special wording is needed for some supplies, such as the domestic reverse charge for construction services or margin scheme sales, so check HMRC guidance if either applies to you.
UK VAT rates
| Rate | VAT | Typical examples |
|---|---|---|
| Standard | 20% | Most goods and services, including most freelance and professional services |
| Reduced | 5% | Domestic fuel and power, children's car seats, some energy-saving installations |
| Zero | 0% | Most food, books and newspapers, children's clothes |
| Exempt / outside scope | No VAT | Some financial, insurance, education and health services |
Zero-rated sales are still taxable supplies, so they appear on a VAT invoice at 0%. Exempt supplies are different and carry no VAT at all. If you are unsure which rate applies, HMRC publishes rate guidance for each sector.
VAT number format
A UK VAT registration number is 9 digits, often written in groups such as 123 4567 89. When dealing with overseas customers it is usually shown with the country prefix, for example GB123456789. Some group or branch registrations use a longer 12-digit form. Put yours in the template's Tax ID field so it prints under your business details.
Full, simplified and modified VAT invoices
- Simplified invoice (£250 or less, including VAT): you may show just your name, address and VAT number, the time of supply, a description, and for each VAT rate the total payable including VAT and the rate charged. Exempt supplies must not be included on a simplified invoice.
- Modified invoice (over £250): retailers can show VAT-inclusive rather than VAT-exclusive values if the customer agrees, but the VAT total must still be shown.
- Full invoice: needed in all other cases, and always the safe choice for business-to-business work.
Not VAT registered? Use a plain invoice
Only VAT-registered businesses can issue VAT invoices or charge VAT. If you are a sole trader below the VAT registration threshold (£90,000 of taxable turnover in a rolling 12 months at the time of writing), title your document simply "Invoice", leave the VAT rate at 0% or remove the tax line, and do not show a VAT number. GOV.UK says every invoice still needs a unique number, your name and contact details, the customer's name and address, a description, the supply date, the invoice date, the amounts and the total owed. Sole traders who trade under a business name should also give an address where legal documents can be delivered, and limited companies must use their full registered company name.
Worked example
A VAT-registered web designer invoices a client for one website at £1,800, 6 hours of copywriting at £65 (£390) and 3 months of hosting at £45 (£135):
- Net total: £1,800 + £390 + £135 = £2,325.00
- VAT at 20%: £2,325 × 0.20 = £465.00
- Total payable: £2,790.00
For a simplified invoice on a VAT-inclusive price, the VAT fraction at 20% is 1/6. A £180 sale including VAT contains £30 of VAT. You can check figures like these with our VAT and sales tax calculator.
Common mistakes
- Leaving out the VAT number, or showing one before you are registered
- Showing the VAT total only in a foreign currency (it must also be in sterling)
- Missing the tax point when it differs from the invoice date
- Reusing or skipping invoice numbers
- Editing a sent invoice instead of issuing a credit note
- Calling a proforma invoice a VAT invoice. A proforma is not a VAT invoice and cannot be used to reclaim VAT.
How to use this UK VAT invoice template
- Pick a design in the invoice generator, or browse more invoice templates.
- Add your logo, business name and address.
- Enter your VAT registration number in the Tax ID field, and your customer's VAT number in their Tax ID field if they have one.
- Add line items. VAT defaults to 20%, so change it to 5% or 0% where needed.
- Set the invoice and supply dates and the payment terms, then download the PDF.
New to invoicing? Read how to write an invoice.
This page is general information, not tax advice. Rules and thresholds change, so check GOV.UK or speak to an accountant about your situation.
Frequently asked questions
Do I have to issue a VAT invoice?
If you are VAT registered and sell to another VAT-registered business, you normally must issue a VAT invoice, usually within 30 days of the supply. For retail sales to consumers you generally only need to provide one if the customer asks.
Can I issue a simplified VAT invoice?
Yes, if the total including VAT is £250 or less. It needs fewer details, but it cannot include exempt supplies, and your customer must still be able to see the VAT rate and the VAT-inclusive total.
I'm not VAT registered. Can I use this template?
Yes. Change the document title to "Invoice", set the tax rate to 0% or remove the tax line, and leave the VAT number blank. Never charge VAT or show a VAT number if you are not registered.
Can I invoice in euros or dollars?
Yes. You can price a VAT invoice in any currency, but the total VAT must also be shown in pounds sterling.
What format is a UK VAT number?
A standard UK VAT number has 9 digits and is often shown with a GB prefix, such as GB123456789. Some group or branch registrations use 12 digits.
