VAT Invoice Example UK

What must a UK VAT invoice include?

When you're VAT-registered, your invoices must include specific information beyond standard invoice requirements. Missing these details means the invoice isn't valid for VAT purposes — your client can't reclaim the VAT, and you could face compliance issues.

HMRC specifies exactly what VAT invoices must contain. There's no flexibility on these requirements — they're legal obligations for every VAT-registered business.

Standard VAT invoice requirements

For invoices over £250 (including VAT), you must include:

• A unique invoice number: Sequential, never reused
• Invoice date: When you issue the invoice
• Date of supply (tax point): When the goods were delivered or services were completed (if different from invoice date)
• Your business name and address: As registered with HMRC
• Your VAT registration number: Format GB 123 4567 89
• Client's name and address: The entity being invoiced
• Description of goods or services: Clear, detailed enough to identify what was provided
• Quantity: Number of items, hours, days as applicable
• Unit price excluding VAT: Price per item/hour/day
• Rate of VAT: Usually 20% standard rate
• Total amount excluding VAT: Net total
• Total amount of VAT: Separate line
• Total amount including VAT: Gross total

Full VAT invoice example

Here's a complete example of a correctly formatted VAT invoice:

This invoice contains every required element: unique numbering, your VAT details, client details, itemised description, clear VAT breakdown, and payment information.

Simplified VAT invoice example

For sales under £250 (including VAT), you can issue a simplified invoice with fewer requirements:

Simplified invoices can show VAT-inclusive prices without separating the net and VAT amounts. They still need your VAT number, date, and description — but client details and line-by-line breakdowns are optional.

Standard vs simplified: when to use each

The decision is straightforward:

• Invoice £250 or more (inc. VAT): Must use full VAT invoice format
• Invoice under £250 (inc. VAT): Can use simplified format
• Client requests full invoice: Always provide full format if asked
• B2B transactions: Full format preferred — clients need details to reclaim VAT

For most freelancers billing business clients, full VAT invoices are standard regardless of amount. Simplified invoices are more common in retail or for small one-off services.

VAT rates explained

The UK has three VAT rates. Understanding which applies to your services ensures correct invoicing:

Standard rate: 20%

Most goods and services, including the majority of freelance work: design, development, consulting, marketing, writing, photography. If you're unsure, this is almost certainly your rate.

Reduced rate: 5%

Specific categories like children's car seats, energy-saving installations, and some sanitary products. Rarely applies to freelance services.

Zero rate: 0%

Books, newspapers, children's clothing, most food. Some digital publications may qualify. You're still VAT-registered and can reclaim input VAT, but you charge 0% to customers.

Exempt services

Insurance, financial services, education, and healthcare are VAT exempt. You don't charge VAT, but you also can't reclaim VAT on related purchases. Different from zero-rated.

For freelancers in typical creative, tech, or consulting fields: standard rate (20%) applies to virtually all your work.

International VAT considerations

VAT treatment changes for international clients:

EU business clients (post-Brexit)

B2B services to EU businesses are generally "outside the scope" of UK VAT. You don't charge VAT. Your invoice should note this: "Reverse charge: customer to account for any VAT due under local rules." Keep records of the client's VAT number and business address.

Non-EU international clients

B2B services to businesses outside the EU are also outside the scope. No UK VAT charged. Keep evidence these are genuine business clients.

Consumers (B2C)

Selling services to individual consumers overseas can have complex VAT rules depending on the service type. Most freelancer work is B2B, but if you sell to consumers, check the specific rules.

Common VAT invoice mistakes

These errors create compliance problems and delay client payments:

Missing VAT number: Every VAT invoice needs your registration number prominently displayed. Without it, clients can't reclaim VAT.

Wrong VAT calculations: Manual maths leads to errors. £1,000 + 20% = £1,200, not £1,220. Use software that calculates automatically.

Not separating net and VAT: Full VAT invoices must show the net amount and VAT amount separately. "£1,200 including VAT" isn't sufficient for invoices over £250.

Missing tax point: If the supply date differs from the invoice date, you need to show both. This affects which VAT period the transaction falls into.

Editing sent invoices: Altering a VAT invoice after sending it is a compliance violation. Issue credit notes and new invoices instead.

Charging VAT when not registered: This is illegal. If you're below the VAT threshold, don't include VAT numbers or charge VAT on invoices.

How FreelancerHub handles VAT invoices

FreelancerHub removes the complexity from VAT invoicing:

Frequently Asked Questions

What's the difference between a VAT invoice and a normal invoice?

A VAT invoice includes your VAT registration number, the VAT rate applied, and the VAT amount shown separately. Non-VAT invoices just show the total amount without any VAT split. If you're VAT-registered, you must issue VAT invoices for most B2B sales.

Do I need to show VAT per line item?

For standard VAT invoices over £250, yes — you should show the VAT rate and amount for each line item, or group items by VAT rate. For simplified invoices (under £250), a single VAT total is acceptable. Most invoicing software handles this automatically.

What's a simplified VAT invoice?

A simplified invoice can be used for sales under £250 (including VAT). It requires fewer details: your name/address/VAT number, date, description of goods/services, and VAT-inclusive amounts. You don't need to show the VAT rate or separate the net amount.

Can I issue VAT invoices if I'm not VAT-registered?

No. Only VAT-registered businesses can issue VAT invoices. Showing a VAT number or charging VAT when you're not registered is illegal. If clients ask for a VAT invoice and you're not registered, explain that you're below the threshold.

What VAT rate do I charge on freelance services?

Most freelance services are charged at the standard rate of 20%. Some services (like certain exports, charity work, or specific industries) may be zero-rated or exempt. If in doubt, assume standard rate applies — it covers the vast majority of freelance work.

How do I correct a VAT invoice with errors?

Never alter a sent VAT invoice — this is a compliance issue. Issue a credit note referencing the original invoice number, then issue a new corrected invoice. Keep all documents on file. This maintains the audit trail HMRC expects.