If you run a VAT-registered business in the UK, issuing proper VAT invoices is part of the deal. It might not be the most glamorous part of running a business, but getting it wrong can cause real headaches. 

HMRC expects you to follow the rules, your clients rely on your invoices to reclaim VAT, and missing key info can land you in hot water.

So, what exactly needs to go on a VAT invoice? Whether you’re new to VAT or just want to double-check you’re doing things right, this guide walks you through everything you need to include—and why it matters.

First things first, what is a VAT invoice?

A VAT invoice is a specific type of invoice that you issue when you sell goods or services that are subject to VAT. It shows the VAT you’ve charged your customer, the total price including and excluding VAT, and some other essential bits of info that HMRC requires.

Only VAT-registered businesses can issue VAT invoices. If you’re not registered, you shouldn’t be adding VAT to your prices or using the word “VAT” on your invoices at all.

When do you need to issue a VAT invoice?

You must issue a VAT invoice when:

• You’re VAT-registered
• You’re supplying goods or services that are VAT-able
• Your customer is also VAT-registered
• The sale is for business purposes (not personal use)

If you’re selling to someone who isn’t VAT-registered (say, a consumer rather than a business), you’re not legally required to issue a VAT invoice. However if they ask for one, it’s good manners to provide it.

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The three types of VAT invoice (yes, really)

Not all VAT invoices are created equal. Depending on the value of the sale and the type of transaction, there are three formats:

1. Full VAT invoice

This is the standard invoice format used for most business-to-business transactions. It includes all the required details, which we’ll cover in the checklist below.

2. Simplified VAT invoice

You can use this for sales under £250 (including VAT). It contains less detail and is ideal for retail or quick sales where issuing a full invoice would be overkill.

3. Modified VAT invoice

Used for retail sales over £250 where VAT-inclusive pricing is shown, like in a shop. It shows the VAT amount but in a slightly different layout to suit customer receipts. 

This article focuses on the full VAT invoice, the kind most service-based businesses and freelancers will use when invoicing clients. 
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The essential VAT invoice checklist (what you must include)

Here’s what needs to be on a full UK VAT invoice:

1. A unique invoice number

Each invoice needs its own number, and they should follow a sequential order. No skipping around or reusing numbers.

2. Your business name and address

This should be your main trading or registered address. If you’re a Limited Company, this needs to match what’s on Companies House. 

3. Your VAT registration number

If you’re VAT registered, you’ll have a number that looks something like this: GB123456789. It absolutely must be on every VAT invoice you issue.

4. The invoice date

This is the date you create and send the invoice.

5. The tax point (aka the “time of supply”)

Sometimes it’s the same as the invoice date, but not always. It’s the date the goods or services were delivered or performed. If it’s different from the invoice date, you need to show both.

6. Your customer’s business name and address

Even if you know them well, this still needs to be clearly written on the invoice.

7. A clear description of what you’re charging for

Be specific. “Consulting” is vague, something like “Website SEO audit and strategy sessions June 2025” is much better. Include quantities and unit prices if relevant. 

8. The total amount before VAT (net amount)

This is the price of the goods or services before VAT is added.

9. The VAT rate used

Usually this will be 20%, but some items may be zero-rated or use the reduced rate of 5%. If something is exempt or outside the scope of VAT, you should state this clearly.

10. The total VAT charged

This is the amount of VAT you’re adding to the invoice. It needs to be listed separately.

11. The total amount payable including VAT

The final total, aka what your customer actually pays.

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A quick example of a full VAT invoice

Let’s say you’re a freelance graphic designer. Here’s what your invoice might look like:

Design by Vicki
1 Name Lane, Swansea, L11, 5LA
VAT Number: GB123456789

Invoice Number: 2025-045

‍Invoice Date: 11 July 2025

‍Tax Point: 11 July 2025

Bill To:
Crunch Accounting
Projects,
Brighton & Hove, BN1 1HW

Description:

Logo Design (project completed July 2025)

Quantity: 1

Unit Price: £600.00

VAT Rate: 20%

Total (ex. VAT): £600.00

Subtotal: £600.00‍

VAT (20%): £120.00‍

Total Due: £720.00
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What if you’re issuing a simplified VAT invoice?

If the total amount is £250 or less, including VAT, and you're dealing with a customer in person (e.g. a shop sale), you can issue a simplified VAT invoice. These only need:

• Your business name and address
• Your VAT number
• The date
• A brief description of the goods or services
• The VAT rate charged
• The total amount payable including VAT

No need for customer details or a breakdown of VAT per item—which saves time when you're serving lots of customers quickly.
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Do I need to keep VAT invoices?

Yes, for at least 6 years (or even longer in some cases). You can keep them digitally or on paper, but they need to be easily accessible if HMRC ever wants to see them.

If you're using accounting software (like Crunch), these systems usually store everything securely and make retrieval simple.
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A few extra things to be aware of

Reverse charge VAT

If you’re buying or selling services that fall under the reverse charge (like certain construction services or cross-border EU transactions), you still issue a VAT invoice — but you don’t charge VAT. Instead, you must include a note that says:

“Reverse charge: Customer to account for VAT to HMRC.”

Speak to your accountant if you think this applies to you — it’s a bit of a technical area.

VAT on international sales

Selling to a business outside the UK? VAT might not apply, but you’ll usually still need to issue an invoice with a note showing that the supply is outside the scope of UK VAT or zero-rated.
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Keeping it compliant (without the stress)

Getting VAT invoices right isn’t just about keeping HMRC happy—it keeps your business running smoothly, builds trust with your clients, and helps you stay on top of your cash flow. But if you’re doing it all manually, it’s easy to slip up.

The good news? You don’t have to go it alone.

With Crunch, you get smart online accounting software that generates fully compliant VAT invoices in seconds, plus real UK-based experts on hand to support you. Whether you're just starting out or have years of invoicing under your belt, we make VAT simple, accurate, and totally stress-free.