What do I need to include on a valid VAT sales invoice?

You’ve registered for VAT – now you need to know how to send out a valid sales invoice to ensure you are compliant with HMRC’s VAT legislation.

HMRC state that for a sales invoice to be a valid VAT document it must have the following details:

1. A sequential invoice number. Most softwares will automatically generate the next invoice number. Do not be tempted to override this. If you want to add a client-specific reference, add this to a reference or description box. (Xero has a reference option which you can add a PO number, or a project name to if you wish. You can add more detail if needed in the invoice description box).
2. The time of the supply (usually the date – we don’t need the actual time)
3. The date of issue of the invoice if it is different to the time of supply
4. Your business name, address and VAT registration number
5. The name and address of the customer
6. A description sufficient to identify the goods or service/s supplied
7. For each description, the quantity of goods or the extent of the services, and the rate of VAT and the amount payable, excluding VAT, expressed in any currency
8. The gross total amount payable, excluding VAT, in any currency
9. The rate of any cash discount offered
10. The total amount of VAT chargeable, expressed in GBP (Pound Sterling)
11. The unit price if relevant

Please note that the above is relevant to invoices sent from the UK to a UK customer. Different rules may apply to countries outside of the UK, and Northern Ireland.