UK · Invoicing

Invoicing in the UK: VAT and what your invoice must show

A UK invoice is not a US invoice with a different currency. VAT has its own rules about what a full invoice must show, and the VAT number is not optional for a VAT-registered business.

Updated November 3, 2026 · BillCanvas

Do you need to register for VAT?

You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days. You can register voluntarily below that threshold, and businesses based outside the UK may have to register even without UK turnover.

The threshold is set by HMRC and can change. Check the current rule on GOV.UK: register for VAT before you act.

What a full VAT invoice must show

HMRC lists the details a full VAT invoice must include. In practice:

• A unique sequential invoice number.
• The time of supply (when the goods or services were supplied).
• The date the invoice was issued.
• Your business name, address and VAT registration number.
• The customer’s name and address.
• A description of the goods or services, the quantity and the unit price.
• The VAT rate and the amount excluding VAT for each line.
• The total excluding VAT, the total VAT and the total including VAT.
• Any cash discount rate offered.
• A margin scheme or reverse charge reference if the supply is subject to one.

The authoritative list is in HMRC VATREC5010. A simplified invoice has fewer requirements and only applies in limited retail situations; do not use it for a normal B2B service invoice.

VAT rates

The standard rate is 20%, the reduced rate is 5% and zero-rated supplies are 0%. Most services are standard-rated unless a specific rule says otherwise. Show the rate and the VAT amount separately — do not bury VAT in the unit price.

Rates can change, so check GOV.UK: VAT rates before you invoice.

Currency

Invoices are normally in pounds sterling. If you invoice in another currency, show the sterling equivalent and the exchange rate you used for VAT. State who pays the transfer fees and keep the bank details on the invoice consistent with the currency.

Sole trader or limited company

Use the name and address your business is registered under. A limited company should use its registered name; a sole trader can trade under a business name but should make clear who the legal seller is. If you are VAT-registered, the VAT number must be on the invoice.

Common UK invoice mistakes

• Missing VAT number or VAT shown only as part of a total.
• No time of supply, or a date that does not match the tax point.
• Charging VAT when the business is not VAT-registered.
• Using a US invoice layout with “sales tax” and a dollar sign.
• No sequential invoice number.

US vs UK invoice

Use the UK invoice template

The UK invoice template is an A4 PDF with a VAT number line, a separate VAT total and room for eight line items. Print it, fill it in a PDF editor, or use the online generator with GBP and a VAT rate.

For a US invoice, see the US invoicing hub. For cross-border work, the international invoicing guide covers currency and tax notes.

This is general information, not tax or legal advice. VAT rules depend on your supplies and registration; use GOV.UK or an accountant for your situation.

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