What a VAT invoice must include (UK): full and simplified invoices

Published 6 October 2026 · Freelancing and getting paid

If you are registered for VAT and sell standard-rated or reduced-rated goods or services to another VAT-registered business, you normally have to issue a VAT invoice within 30 days of the supply. HMRC sets out what it must show, and your customer needs a valid VAT invoice to reclaim the VAT you charged.

What a full VAT invoice must show

1. A unique invoice number that follows on from the last one.
2. The time of supply, also called the tax point, and the date of issue if it is different.
3. Your name, address and VAT registration number.
4. Your customer's name and address.
5. A description that identifies the goods or services.
6. For each item: the quantity, the unit price, the rate of VAT and the amount excluding VAT.
7. The total excluding VAT.
8. The rate of any cash discount you offer.
9. The total VAT charged, shown in sterling.

Simplified VAT invoices for £250 or less

If the total including VAT is £250 or less, you can issue a simplified invoice instead. It needs your name, address and VAT registration number, the time of supply, a description of what you supplied, and for each VAT rate, the total amount payable including VAT and the rate charged. Above £250, use a full invoice.

The time of supply

The time of supply is the date that decides which VAT return the sale belongs to. It is usually the date you deliver the goods or finish the service, but it can be earlier if you are paid or invoice first. When it differs from the date you issue the invoice, show both. HMRC's VAT guide, Notice 700, explains the rules in full.

When you do not need a VAT invoice

You do not have to issue a VAT invoice for sales that are only zero-rated or exempt, or under the second-hand margin schemes, among other cases set out in the notice. If you are not registered for VAT, do not show VAT on your invoices at all.

Invoicing in another currency

Prices and the total excluding VAT can be in any currency, but the total VAT must also be shown in sterling, so your customer can enter it on their return.

Correcting a VAT invoice

Do not edit an invoice you have already sent. Issue a credit note that cancels it, or the wrong part of it, and a new invoice with a new number.

Free template

The free invoice template can show your VAT number and a separate date of supply, and works out the VAT from the rate you enter. It applies one VAT rate to the whole invoice, so it fits when every line is at the same rate; if you sell at more than one rate, put the rate in each line's description or issue separate invoices. The credit note template reverses VAT the same way.

General information, not tax advice. Check HMRC's current guidance or an accountant for your situation.

Sources

• HMRC: Record keeping for VAT (VAT Notice 700/21), section 4: VAT invoices
• HMRC: VAT guide (VAT Notice 700)

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