Invoicing and payment terms
VAT details to include on invoices
If you are registered for VAT, whether the business is a limited company or a sole trader, you must put the following information on your invoices:
- a unique and sequential identifying invoice number
- the date the invoice is issued
- your customer's name and address
- your business' name, address and VAT registration number
- date of supply to the customer (or tax point)
- a description sufficient to identify the supply of goods or services
- the quantity of goods or services, with a unit price excluding VAT, and the rate of VAT per item
- the total amount payable without VAT added, and the amount of VAT charged
If you are exporting goods or services, see exporting goods and services and VAT.
It is best practice to set up records and invoice correctly for VAT from the time your business starts - you may find it useful to set up a pro forma invoice. A pro forma invoice can be an invoice drawn up by you and sent to the buyer to confirm the details of a contract, or a polite reminder to the buyer that a debt will be due for payment.