This notice cancels and replaces Notice 700/63 (April 2014).
1.1 What is this notice about?
This notice is about issuing, receiving and storing VAT invoices in an electronic format.
Main narrative treatment—V3.516.
1.2 What has changed?
The notice has been updated to make it suitable for publication on GOV.UK.
1.3 Who should read this notice?
You should read this notice if you—
— issue, or are intending to issue, your VAT sales invoices electronically;
— receive, or are intending to receive, VAT invoices in an electronic format from your suppliers.
2 Issuing electronic VAT invoices
2.1 What is electronic invoicing?
Electronic invoicing is the transmission and/or storage of invoices, in an electronic format without the delivery of paper documents. The electronic format may be a structured format such as XML or an unstructured format such as PDF.
2.2 What are the benefits of electronic invoicing
Electronic invoicing offers many advantages over traditional paper invoices. The rapid electronic transmission of documents in a secure environment may provide for—
— structured data for auditing
— improved traceability of orders
— decreased reliance on paper reducing storage and handling costs
— rapid access/retrieval
— improved cashflow
— security/easier dispute handling.
This list is not exhaustive but does indicate some of the principal benefits.
2.3 Do I have to raise my VAT invoices electronically?
No. It's up to you whether you issue paper or electronic VAT invoices.
2.4 Can I use both paper and electronic VAT invoicing at the same time?
If you issued electronic and paper invoices for the same supplies, or to the same customers,