VAT Invoice Requirements UK: What to Include (Free VAT Invoice Template, 2026)

If you're VAT-registered in the UK, your invoices have to do more than just ask for money — they're legal VAT documents. Get the required fields right and your customers can reclaim their VAT, your records reconcile cleanly, and you stay on the right side of HMRC. Get them wrong and you risk rejected reclaims, disputes, and problems at inspection.

This guide covers exactly what a UK VAT invoice must include, the three types of VAT invoice (full, simplified and modified), when you have to issue one, and a worked example. There's a free VAT invoice template at the end you can fill in straight away.

When Do You Have to Issue a VAT Invoice?

You must issue a VAT invoice when you make a standard-rated or reduced-rated sale to another VAT-registered business. A few key points:

• You generally have 30 days from the date of supply (or payment, if earlier) to issue the invoice.
• You don't have to issue a VAT invoice to a non-VAT-registered customer (e.g. a consumer), though many businesses do anyway.
• You can't issue a VAT invoice at all if you're not VAT-registered — charging or showing "VAT" without a registration number is a serious error.
• Zero-rated and exempt supplies have different rules (more below).

If your turnover is over the £85,000 VAT registration threshold you must register; many businesses also register voluntarily to reclaim input VAT.

What a Full VAT Invoice Must Include

A standard (full) VAT invoice is the default for most B2B sales. HMRC requires all of the following:

1. A unique, sequential invoice number
2. The invoice date (the "time of supply" / tax point if different)
3. Your business name, address and VAT registration number
4. The customer's name and address
5. A description of the goods or services supplied
6. For each line: the quantity, unit price (excluding VAT), VAT rate, and amount
7. The total amount excluding VAT (the net)
8. The total VAT charged, shown in sterling
9. The rate of any cash/settlement discount offered
10. The total amount including VAT (the gross)

The single most common compliance failure is a missing VAT registration number — without it your customer legally cannot reclaim the VAT, and they'll bounce the invoice straight back to you.

The UK VAT Rates You'll Show

Rate	Percentage	Typical examples
Standard	20%	Most goods and services
Reduced	5%	Domestic fuel/power, children's car seats, some energy-saving work
Zero	0%	Most food, children's clothing, books, public transport
Exempt	—	Insurance, finance, postage stamps, some education/health

Zero-rated is not the same as exempt. Zero-rated sales are still taxable (at 0%) and count towards your taxable turnover; exempt sales are outside the VAT system and can restrict the input VAT you can reclaim. If you make exempt supplies, check the partial-exemption rules.

Simplified VAT Invoice (Sales Under £250)

For retail-style sales where the total is £250 or less (including VAT), you can issue a simplified VAT invoice with fewer fields. It needs only:

• Your business name, address and VAT registration number
• The time of supply (tax point)
• A description of the goods or services
• The VAT rate charged on each item
• The total amount including VAT

You don't need the customer's details or a separate net/VAT split on a simplified invoice. This is what most shop and café receipts are.

Modified VAT Invoice

For sales over £250, a customer can agree to a modified VAT invoice, which shows the VAT-inclusive value of each line (rather than the net) plus the total VAT, net and gross. It's less common but handy for some retail and hospitality scenarios — both parties must agree to use it.

Worked Example: A 20% VAT Invoice

Say you bill a VAT-registered client £1,500 (excluding VAT) for design work at the standard rate:

Line	Amount
Design services (net)	£1,500.00
VAT @ 20%	£300.00
Total payable	£1,800.00

Your invoice shows the £1,500 net, the £300 VAT (with your VAT number), and the £1,800 gross. Your client pays £1,800 and reclaims the £300 as input VAT; you pay the £300 over to HMRC on your next return (minus your own input VAT).

Tax Point: The Date That Actually Matters

VAT is accounted for by the tax point (time of supply), not always the invoice date:

• Basic tax point — when goods are delivered or services completed.
• If you issue an invoice or receive payment within 14 days of the basic tax point, that date usually becomes the tax point.
• Issuing the invoice before supply, or taking an advance payment, can create an earlier tax point.

This matters because it decides which VAT return the sale falls into. When in doubt, the invoice date and supply date being the same keeps things simple.

Construction? Check the Reverse Charge First

If you supply VAT-registered construction services, the domestic reverse charge usually means you do not add VAT — the customer accounts for it. See our CIS invoice guide for exactly how to word a reverse-charge invoice.

Keep Digital Records (Making Tax Digital)

Under Making Tax Digital (MTD) for VAT, VAT-registered businesses must keep digital records and file returns through compatible software. Keep a clear digital copy of every VAT invoice you issue and receive — a tidy PDF per invoice, numbered sequentially, makes your quarterly return painless.

Free VAT Invoice Template

You don't need a spreadsheet. With 1nvoic3 you can build a compliant VAT invoice in about a minute:

1. Add your business details and VAT registration number.
2. List each item with its net price and set the VAT rate (20% / 5% / 0%).
3. The net, VAT and gross totals are calculated for you.
4. Download a professional PDF and send it.

It's free, works on your phone, and needs no sign-up — try the free UK invoice generator.

VAT Invoice FAQs

Do I need to put my VAT number on every invoice? Yes — if you're VAT-registered and charging VAT, your VAT registration number is mandatory. Without it your customer can't reclaim the VAT.

Can I issue a VAT invoice if I'm not VAT-registered? No. You must not show or charge VAT, or display a VAT number, unless you're registered. Issue a normal (non-VAT) invoice instead — see our free UK invoice templates.

What's the difference between zero-rated and exempt? Zero-rated sales are taxable at 0% and count towards taxable turnover; exempt sales sit outside VAT and can limit how much input VAT you reclaim.

How long do I have to issue a VAT invoice? Normally within 30 days of the time of supply (or of payment, if you're paid first).

How long must I keep VAT invoices? HMRC requires you to keep VAT records for 6 years (digitally, under Making Tax Digital).

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Need a compliant VAT invoice right now? Build one — net, VAT and gross worked out automatically — with 1nvoic3. Free, instant, no sign-up. See also our free UK invoice templates and the CIS invoice guide.