What a valid VAT invoice must include in 2026 (with a free template)
A valid VAT invoice is the document that lets your customer reclaim the VAT you charged, so it has to carry a set list of details. Only a VAT registered business can issue one, and it has to go out within 30 days of the supply. There are three versions: a full invoice for most sales, a simplified invoice for retail sales of £250 or less, and a modified invoice for larger retail sales. Here is exactly what each one needs, the mistakes that make an invoice invalid, and a free template you can fill in and print.
Issue within
30 days
Simplified invoice up to
£250
Keep records for
6 years
Show VAT total in
Pounds
What counts as a valid VAT invoice
A VAT invoice is more than a receipt. It is the formal record that shows how much VAT was charged, at what rate, and by whom, so a VAT registered buyer can claim that VAT back on their own return. Because of that, HMRC sets out the details every VAT invoice must show.
Two rules sit underneath everything else. First, you can only issue a VAT invoice and charge VAT if you are VAT registered. If your taxable turnover is below the £90,000 registration threshold and you have not registered voluntarily, you must not add VAT or issue a VAT invoice. Second, you normally have to issue the invoice within 30 days of the date you supplied the goods or services, known as the tax point.
What a full VAT invoice must include
A full VAT invoice is the standard version, used for most business to business sales. It must show the following. The first block covers the invoice itself:
- A unique invoice number. A sequential number that identifies this document. It can include letters.
- Your business name and address. The trading name and address of the seller.
- Your VAT registration number. The nine digit number HMRC issued you, usually shown with a GB prefix.
- The invoice date. The date you issue the document.
- The tax point. The time of supply, shown separately only when it differs from the invoice date.
- The customer name and address. The name or trading name of the buyer and their address.
- A description of what you supplied. Enough detail to identify each item of goods or services.
The second block is the money, and it has to appear for each line on the invoice:
- Quantity and unit price. How many, and the price of each unit excluding VAT.
- The VAT rate for each item. For example 20 percent, 5 percent or 0 percent. Rates and categories are set out on our current VAT rate page.
- The net amount per line. The line total before VAT is added.
- Any cash discount rate. The rate of any settlement or cash discount offered.
- The total excluding VAT. The sum of all lines before VAT.
- The total VAT. The VAT charged, split by rate where more than one rate applies, and shown in pounds sterling.
- The total including VAT. The gross amount the customer pays.
Working out the net, the VAT and the gross for each line is where most errors creep in. Our free VAT calculator does the add VAT and remove VAT maths in seconds, so the figures on your invoice match to the penny.
The three types of VAT invoice
Which version you issue depends on who you are selling to and how much the sale is worth. Here is how they compare.
| Type of invoice | When you can use it | What it must show |
|---|---|---|
| Full VAT invoice | The standard choice for most sales, and always required for business to business sales. | Every detail listed above, with the net amount, VAT rate and VAT shown for each line. |
| Simplified VAT invoice | Retail sales where the total is £250 or less including VAT, common in shops and hospitality. | Your name, address and VAT number, the tax point, a description, and for each rate the VAT rate and the total including VAT. No customer details needed. |
| Modified VAT invoice | Retail sales over £250 where the customer agrees in writing to VAT inclusive figures. | The same details as a full invoice, but line values are shown including VAT, alongside the totals for net, VAT and gross. |
Simplified VAT invoice
If you run a shop, a cafe or another retail business and the sale comes to £250 or less including VAT, you can give a simplified invoice. It drops the customer details and the line by line breakdown. You still have to show your name, address and VAT number, the tax point, a description of what was sold, and, for each VAT rate, the rate charged and the total including VAT. The £250 figure is measured including VAT, not before it. You cannot put exempt items on a simplified invoice.
Modified VAT invoice
For retail sales above £250, you can issue a modified invoice if the customer agrees to it in writing. It carries the same information as a full invoice, but each line is shown as a VAT inclusive amount rather than net. You then show the totals separately: the total excluding VAT, the total VAT, and the total including VAT, for each rate used.
Special cases to get right
Reverse charge sales
On some supplies, such as construction work under the Construction Industry Scheme reverse charge, you do not add VAT. Instead the customer accounts for it. Your invoice shows the net value with no VAT amount, plus a clear line such as “Reverse charge: customer to account for VAT to HMRC”.
Margin scheme sales
If you sell second hand goods under the VAT margin scheme, you must not show VAT as a separate amount. The invoice states that a margin scheme applies, and the VAT stays hidden inside the price.
Invoices in another currency
You can raise an invoice in euros, dollars or any currency. The one thing that must appear in pounds sterling is the total VAT payable, converted at the UK market rate at the time of supply or another rate HMRC accepts.
Zero rated and exempt items
Zero rated items still belong on a VAT invoice, shown at 0 percent. Exempt items are different and should be kept off a simplified invoice. If you are not sure which is which, our current VAT rate page lists what falls into each category.
Electronic invoices
An emailed or software generated invoice is just as valid as paper, as long as it carries the required details and your customer can access and store it. Mandatory electronic invoicing for business to business sales is on the way in the UK, but that is a 2029 change, not a 2026 one.
How long you have to issue one, and how long to keep it
The deadline to issue a VAT invoice is 30 days from the tax point, or from the date of payment if the customer pays in advance. Once issued, you keep a copy, along with the invoices you receive, for at least 6 years. If you sell to consumers in the EU through the One Stop Shop, the retention period is 10 years rather than 6.
Common mistakes that make a VAT invoice invalid
- No VAT number. Without your VAT registration number, the customer cannot reclaim the VAT.
- Charging VAT while not registered. Only registered businesses can add VAT. Doing it otherwise is not allowed.
- Reusing or skipping invoice numbers. Each invoice needs its own number in a clear sequence.
- The wrong tax point. Getting the time of supply wrong can push VAT into the wrong return.
- VAT not shown in pounds. Even a euro invoice must show the VAT total in sterling.
- Missing the rate. Every line needs its VAT rate, including 0 percent for zero rated goods.
When you spot a mistake, do not delete the invoice. Issue a corrected invoice or a credit note, and keep both, so your records and your VAT return stay clean.
Free VAT invoice template
Use the template below as a starting point. Click any field to type your own details, then use the button to print it or save it as a PDF. It is laid out as a full VAT invoice, so it already has every field HMRC asks for. For the net, VAT and gross figures, our VAT calculator will do the maths.
Your business name
Street address, town, postcode
VAT registration number: GB 123 4567 89
VAT invoice
Invoice number: INV 001
Invoice date: 9 September 2026
Tax point: 9 September 2026
Bill to
Customer name
Customer address, town, postcode
| Description | Qty | Unit price | VAT rate | Net | VAT |
|---|---|---|---|---|---|
| Description of goods or services | 1 | £100.00 | 20% | £100.00 | £20.00 |
| Second line item | 2 | £50.00 | 20% | £100.00 | £20.00 |
| Third line item | 1 | £0.00 | 0% | £0.00 | £0.00 |
Payment terms: due within 30 days. Bank details or payment link here.
Frequently asked questions
If you are VAT registered and you sell standard or reduced rate goods or services to another VAT registered business, yes, and within 30 days of the supply. If you are not VAT registered, you must not charge VAT or issue a VAT invoice at all.
A VAT invoice carries the details HMRC requires and lets a VAT registered customer reclaim the VAT. A plain receipt or till slip often lacks those details, so it may not support a VAT claim.
Yes, for retail sales of £250 or less including VAT. It needs fewer details and no customer address, but it still has to show your VAT number, the tax point, a description, and the VAT rate with the total including VAT.
Yes. You can invoice in any currency, but the total VAT payable must be shown in pounds sterling, converted at the UK market rate at the time of supply or another rate HMRC accepts.
At least 6 years, both the invoices you issue and the ones you receive. If you use the One Stop Shop for sales to EU consumers, keep them for 10 years.
Do not delete it. Issue a corrected invoice or a credit note that references the original, and keep both documents so your records reconcile.
The VAT details required are the same. A limited company usually also shows its registered company name and number, but the VAT fields do not change.
Yes. An electronic invoice is valid as long as it contains the required details and your customer can receive and store it.
Figures and rules checked against gov.uk and HMRC VAT guidance, current for 2026. Always confirm your own position with HMRC or an accountant before you rely on it.