UK VAT Invoice Requirements

VAT invoices are a specific legal document — and if you're VAT-registered, getting them wrong can cause real problems with clients and HMRC.

Here's what you need to know.

When Do You Need a VAT Invoice?

You must issue a VAT invoice if:

You're VAT-registered
You're selling to another VAT-registered business (B2B)
The sale is liable for VAT

If you're not VAT-registered, you simply don't issue VAT invoices. Full stop.

What Must a VAT Invoice Include?

A full VAT invoice must contain all of the following:

| Field | Example | |-------|---------| | Invoice number | INV-2026-047 | | Invoice date | 5 April 2026 | | Tax point (if different from invoice date) | 31 March 2026 | | Your name and address | Jane Smith, 12 High Street, Bristol BS1 | | Your VAT registration number | GB 123 4567 89 | | Client's name and address | Acme Ltd, 1 Business Park, London | | Description of supply | Web design services — March 2026 | | Net amount (ex-VAT) | £1,000.00 | | VAT rate | 20% | | VAT amount | £200.00 | | Total including VAT | £1,200.00 |

VAT Rates in the UK

| Rate | Type | Common Examples | |------|------|-----------------| | 20% | Standard | Most services, professional fees | | 5% | Reduced | Some energy and home installations | | 0% | Zero-rated | Some books, food, children's clothing | | Exempt | N/A | Financial services, medical services |

Most freelancers (designers, developers, writers, consultants) charge 20% standard rate.

Simplified VAT Invoices

For sales under £250 including VAT, you can issue a simplified VAT invoice that doesn't need to include the customer's name and address. Useful for lower-value transactions.

How Billdrop Handles VAT

Billdrop's invoice generator lets you add your VAT number and apply the correct rate — it automatically calculates VAT and shows the breakdown on your invoice. The PDF output meets HMRC's requirements for a full VAT invoice.

No accounting software needed for the invoicing part.

Always verify current thresholds and rates at gov.uk/vat-rates — rates can change at each Budget.