VAT registered businesses (often called traders) will usually issue VAT invoices when a sale is completed. This is not compulsory in all cases, but usually issued. A VAT invoice is usually issued within 30 days of the supply.
A VAT invoice is legal confirmation of a VAT charge made. Traders are not able to recover VAT unless they obtain a VAT invoice. HMRC have specific VAT requirements in relation to VAT invoices. Specifically VAT invoices will usually include:
- An identity number (usually an invoice number)
- Your full name, address and VAT registration number
- Date of supply
- Date of invoice (if different from date of supply)
- The customers full name and address
- The customers VAT number (if in the EU but outside the UK)
- Type of supply (eg sale or rental)
- A description identifying the goods and services you are supplying, including:
- The quantity of goods or extent of services
- Charge excluding VAT
- The rate of VAT applicable
- The total charge including VAT
- The rate of any discount offered
- The total amount of VAT charged shown in £’s sterling.
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