VAT stands for Value Added Tax. VAT invoices provide the details of VAT of a sale or other services and goods supply. It can be in electronic form or in the paper. An individual should know what is a VAT invoice to design it professionally and clearly.
A customer who registered for the VAT should have a genuine VAT invoice from the provider to claim back the paid VAT for their business purchase.
The following information should be included on the VAT invoice:
- Unique invoice number and that number should follow on from the previous invoice number – if you cancel an invoice which is serially numbered, you must show it to a VAT officer at your future VAT inspection.
- The trading name or the name and the address of the seller.
- Registration number of the seller’s VAT.
- Invoice date.
- The supply time – if it varies from the invoice date.
- The trading name or the name and the address of the customer.
- Enough description to recognize the services or goods provided to the customer.
For each listed item on the invoice, you should show the following
- Unit price should be shown excluding the VAT.
- Goods quantity and the services extent.
- VAT rate which applies to the goods being sold.
- The total payable amount excluding VAT.
- Any cash discount rate.
- Total amount of charged VAT.
If the issued VAT invoice includes zero rated or absolved services or goods, you should
- Clearly show that there is no VAT on those services or goods.
- The total values of those should be shown separately.
Issuing a VAT invoice
If you are VAT registered, you should provide any VAT registered clients a VAT invoice for reduced or standard rated services or goods you sell. For the retailers, there is no need to send a receipt or VAT invoice unless the client asks. There is a time limit for issuing a VAT invoice. VAT invoices should be issued within 1 month of the date of your services or goods supply.