What needs to be included on a UK VAT Receipt

PHS Team

21 Nov, 2025

Running a business in the UK means understanding how to handle VAT properly. VAT rules can seem complicated at first. But having a clear VAT receipt is very important. A VAT receipt shows that VAT was charged on your sale.

A VAT receipt or invoice must include certain details. These are the names and addresses of the seller and buyer, the VAT registration numbers, invoice dates, and a unique invoice number. It should also describe the goods or services clearly, show the VAT rates and amounts, and list totals.

What is a VAT Receipt?

A VAT receipt is a document that shows VAT as charged on a sale. It is issued by a VAT-registered business to a customer. It acts as proof of the transaction and the VAT amount paid. 

The main purpose is to help the buyer reclaim input VAT where eligible and to support correct VAT accounting for the seller. 

For HMRC, having a valid VAT receipt means including the right details and keeping proper records.

Why Do You Need a VAT Receipt?

A VAT receipt is a formal record showing that VAT was charged on a sale. It helps the buyer reclaim VAT if eligible and supports accurate VAT accounting for the seller.

• Shows proof you paid VAT.
• Allows VAT-registered customers to reclaim VAT.
• Keeps your records in order.
• Ensures your VAT records are neat and easy to review.

The Different Types of VAT Receipts

There are three main types of VAT receipts:

• Full VAT Invoice
• Simplified VAT Receipt
• Modified VAT Receipt

Let’s explore them in detail.

What Does a Full VAT Invoice Look Like?

A full VAT invoice is needed for most business-to-business transactions. It must show a lot of details to be accepted by HMRC.

A full VAT invoice should include:

• Unique Sequential Number: A unique number to identify and track your invoices. Must follow a continuous sequence without gaps.
• Time of Supply: The date when goods or services were provided or supplied.
• Date of Issue: The date when the invoice is created and issued.
• Seller’s Name, Address, and VAT Registration Number: The exact business details as on your VAT registration certificate.
• Customer’s Name and Address: The full name and address of the person or business purchasing the goods or services.
• Description of Goods or Services: Clear and specific details to identify the goods or services supplied.
• Quantity or Extent of Goods or Services: The amount or volume of each item or service provided.
• VAT Rate and Amount Payable Excluding VAT: VAT rate applied and the price before VAT for each item.
• Gross Total Amount Excluding VAT: The total price of all items before VAT is added.
• Rate of Any Cash Discount: The percentage rate if a discount is offered for early or cash payment.
• Total VAT Charged: The total VAT amount payable, shown in sterling (£).
• Unit Price: The price per individual item or unit.
• Margin Scheme Reference: Include this if the margin scheme is used, indicating special VAT treatment.
• Reverse Charge Reference: If the customer is responsible for paying VAT under the reverse charge, include this note.

A valid VAT invoice lets your customer reclaim VAT and is your proof for VAT accounting.

Simplified VAT Receipt

A simplified VAT receipt is allowed if the sale is less than the simplified VAT receipt threshold. This threshold is currently £250 (including VAT). For lower-value sales, you can issue a simplified VAT receipt. It has fewer details than a full VAT invoice.

What does a simplified VAT receipt include?

• Seller’s name and address
• Seller’s VAT registration number
• Date of supply
• Description of goods or services
• Total price including VAT
• VAT rate charged on each item?

This version is easier for shops and small sellers making low-value sales.

Modified VAT Receipt

A modified VAT receipt is used for retail sales over £250 where VAT applies. It includes more details than a simplified VAT receipt but is slightly different from a full VAT invoice.

What does a modified VAT receipt include?

• Seller’s name and address
• Seller’s VAT registration number
• Date of supply
• Description of goods or services
• Price of each item excluding VAT
• Price of each item, including VAT
• VAT rate charged on each item
• Total amount excluding VAT
• Total amount of VAT
• Total amount including VAT

This type of receipt is common for larger retail transactions. It must show prices both before and after VAT for each item, helping customers clearly see VAT amounts. 

Who Should Issue a VAT Receipt or Invoice?

• Only VAT-registered businesses should issue a VAT invoice or VAT tax invoice.?
• If your customer is also VAT-registered, you must provide them with a VAT invoice so they can claim VAT.

Mistakes to Avoid

Some common errors include:

• Missing VAT registration number.
• Forgetting the customer's details on full VAT invoices.
• Not listing the full supply/tax point date.
• Using delivery notes as VAT receipts.

These issues mean the invoice is not valid and VAT cannot be reclaimed.?

What Does an Invoice Look Like?

For best results, use a template or accounting software. A proper invoice template makes it easier to include everything you need.

• Use clear headings (# Invoice)
• List all details in sections
• Add totals near the bottom
• Show VAT rates and amounts clearly

Keeping VAT Receipts for Records

HMRC requires you to keep records of VAT invoices and receipts. This can be done digitally or on paper. Good record-keeping helps avoid penalties and makes VAT returns easier.?

• Save all receipts for at least six years.
• Store digitally if possible for ease.
• Organise by date or supplier name.?

Conclusion

Every UK business registered for VAT must understand what needs to be on a VAT receipt or VAT invoice. Use the right format depending on your sale value and who your customer is. 

Make sure your invoices are complete and accurate so you stay compliant and make life easier for your customers.

If you are looking for help preparing accurate UK VAT receipts, PHS Associates ensures full compliance, proper documentation, and smooth VAT reclaim processes for your business. Call us today on 0208 8611685 or email info@phs-uk.co.uk  to keep your small business finances in excellent shape.

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