• ICAEW
  • XERO GOLD PARTNER
  • KASHFLOW

 

0161 928 3276

 

 

We understand our clients

What Needs to be on a VAT invoice?

Newsletter issue - May 08.

You must have a valid VAT invoice in order to reclaim VAT charged on the goods or services you buy. When dealing with a new supplier check that their invoice includes all of the following details:

  • The suppliers name, address and VAT registration number
  • The name and address of the person to whom the goods are supplied (this will be your business)
  • A unique identification number (see below for new rules)
  • Date of issue
  • Time of supply of the goods or services (this may be the same as the date of issue)
  • A description of the goods or services supplied
  • For each description of goods or services:
    • The unit price (see below for exceptions)
    • The rate of VAT charged
    • The amount payable excluding VAT
  • The total amount payable for the whole invoice excluding VAT
  • Rate of any discount available
  • Total amount of VAT charged

VAT invoices must generally be in pounds sterling, but where you have received an invoice expressed in a foreign currency, as long as the sterling equivalent is shown for the total payable and the total VAT due, the invoice will be a valid VAT invoice. The wording on the invoice does not have to be in English, but if you get a VAT inspection you will have to produce a translation of the invoice into English if the VAT officer asks for one.

There are two relatively recent changes to the VAT invoice rules you should check for your own business:

Unit price
Since 2004 a VAT invoice must include the unit price of any 'countable' goods or services. So if you charge by the hour you need to show your hourly rate. However, if it is not the usual practice in your business sector to show this information you don't have to, as long as your customer doesn't demand it.

Unique identification number
From October 2007 each of your VAT invoices must have a unique and sequential number. If you restart your invoice numbering each year this could lead to identically numbered invoices in different years. You can use separate invoice sequences for different customers as long as each sequence of invoices is separate and unique. You can also use customer prefixes on the invoices, as long as no two customers have the same prefix.

 

To work Smarter in your Business Contact Beauchamp Charles

Contact Us

"Join our newsletter for hints, tips and tax advice"

 

What our clients say

Dakins Property Services

Great Results, Personable, High Integrity

Choice Events Limited

All at Beauchamp Charles are very helpful, approachable and easy to talk to. They keep me informed with key dates; I can feel totally confident that I won't ever miss any deadlines! Whoever I deal with, always deal with matters professionally and efficiently and if they are unavailable they get back to me promptly.

FT leisure Ltd

I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

Fredrick Thomas Electrical and Maintenance

We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

Barnes Walker Landscapes Limited

We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.