31 May 2024

Have you checked your VAT invoices recently?

When producing your sales invoices to customers it is important to make sure that they comply with the VAT regulations. Failing to do so can cause problems both for you and for your customers.


There are three different types of VAT invoices that can be produced, so it is important to understand the difference and know which one is right for your business.


A Simplified Invoice

This is intended for sales under £250. The invoice must include:

  • The seller’s name, address and VAT registration number
  • A unique sequential invoice number
  • The tax-point (usually the date of supply)
  • A description of good or services supplied and the applicate VAT rate(s)
  • The total charge including VAT.

A Full VAT Invoice

A full VAT invoice is the standard invoice and is more comprehensive than the simplified invoice. It includes the same fields as the simplified invoice plus:

  • The Invoice date (usually the same as the tax point)
  • The customer’s name and address
  • The total excluding VAT as well as the total VAT charge
  • The unit price and quantity of goods must also be shown, together with details of any discounts

A Modified VAT Invoice

A modified VAT invoice can be issued in respect of retail sales exceeding £250. They contain the same information as the full VAT invoice and in addition must include the total charged including VAT. In practice that will be on the full VAT invoice anyway.


With the choice of three different types of VAT invoice, it’s vital to choose the right type of documentation and to also make sure you adhere exactly to the guidance and regulations.

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