UK VAT Invoice Generator
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Invoicing in United Kingdom: what your invoice needs
If you are VAT-registered in the UK, your sales to other VAT-registered businesses need a proper VAT invoice, because that is the document your customer uses to reclaim VAT. HMRC lists what it must show, from a sequential invoice number to the VAT rate and the amount of VAT in pounds.
If you are not registered, you cannot charge VAT and should not show a VAT number. A plain invoice with your name, the work done and the total is enough. Registration becomes compulsory once your taxable turnover passes £90,000 in any rolling 12 months.
Key facts for United Kingdom
- Tax
- Value added tax (VAT)
- Rates
- 20% standard, 5% reduced (for example domestic fuel), 0% zero-rated (for example most food)
- Registration threshold
- £90,000 taxable turnover in the last 12 months (from 1 April 2024)
- When to issue
- Within 30 days of the time of supply
- Simplified invoice
- Allowed for sales under £250
- VAT in pounds
- If you invoice in another currency, show the VAT amount in sterling
- Records
- Keep VAT invoices for 6 years
- Digital records
- VAT-registered businesses must keep records digitally and file through Making Tax Digital software
What a United Kingdom invoice should include
- A unique, sequential invoice number
- Your business name, address and VAT registration number
- The invoice date, and the time of supply (tax point) if it is different
- The customer's name and address
- A description of the goods or services, with quantity and unit price
- The rate of VAT charged for each item, and any discount
- The total excluding VAT, the total VAT payable in pounds, and the total including VAT
- Reverse charge or other special wording if it applies
Practical tips
Pass on late payment terms
Under the Late Payment of Commercial Debts Act you can charge interest at 8% above the Bank of England base rate on overdue business invoices, plus a fixed sum of £40, £70 or £100 depending on the size of the debt. State your payment terms on the invoice so the claim is easy to make.
Set a due date, or interest only starts after 30 days
If you have not agreed a payment date, statutory interest on a late business invoice starts 30 days after the customer receives it. Put the due date and your bank details in the invoice notes, and use the due date field.
Invoicing overseas clients
Services to business customers abroad are often outside the scope of UK VAT, so no VAT is charged. Put the reason on the invoice, for example "Outside the scope of UK VAT, reverse charge", and keep the customer's VAT or tax ID.
Common questions about invoicing in United Kingdom
Do I need to be VAT-registered to use this?
No. If you are not registered, set the VAT rate to 0% and leave the VAT number blank. The tool then produces a plain invoice. Registered businesses enter their number and rate and get a VAT invoice.
What is the difference between a full and a simplified VAT invoice?
A simplified (less detailed) VAT invoice can be used for sales under £250 and needs fewer details, such as no customer name. For anything larger, or for customers who want to reclaim VAT, use a full invoice.
Can I invoice in US dollars or euros?
Yes. Pick the currency in the tool. HMRC still requires the VAT amount to be shown in pounds sterling, so add the sterling VAT figure in the notes if you invoice in another currency.
How long must I keep my invoices?
For VAT purposes, 6 years. Limited companies must keep accounting records for at least 6 years too.
Related guides and tools
- How to charge late payment fees as a freelancer
- Invoice payment terms explained
- Invoice due date calculator
- Essential elements of every invoice
Official sources: GOV.UK: VAT invoices, GOV.UK: register for VAT.
Last updated September 2026. This is general information, not tax or legal advice. Tax rules change, so check the official source or ask a local accountant before relying on it for an important invoice.
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