Tax invoice requirements

By Tolley
Tax invoice requirements

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Tax invoice requirements
  • Tax invoices
  • Documents that are not tax invoices
  • Specific circumstances
  • Calculating VAT due on an invoice
  • Time limit for issuing a tax invoice
  • Practical points

This guidance note provides details of the information that must be shown on a valid tax invoice. Businesses who supply goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.

VATA 1994, Sch 11, para 3; De Voil Indirect Tax Service V3.511

If the business is issuing and / or receiving electronic invoices, then it should also read the Electronic invoicing guidance note for more information.

A tax invoice shows certain VAT details regarding the supply of goods and services. It can be either in paper or electronic form. A VAT registered customer is required to have possession of a valid tax invoice from the supplier in order to recover any VAT charged by the supplier.

A tax invoice forms part of the required accounting documentation that must be retained by a business and will be reviewed by HMRC as part of an audit.

If the business is using procurement purchasing cards, then please see the Procurement cards guidance note for more information.

Tax invoices

A tax invoice must show the following information:

  • a sequential number based on one or more series which uniquely identifies the document
  • supplier’s name and address
  • supplier's VAT registration number
  • customer’s name and address
  • invoice date
  • tax point date (see the Time of supply (tax points) guidance note)
  • a description of the goods / services supplied that can be used to identify the supply made
  • unit price of the goods supplied (excluding VAT). The unit price must also be stated for services as well and normally the hourly rate or price for standard services will be used. However, if it is not possible to show a unit price

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