VAT Invoice Guide: What to Include & How to Charge VAT

What Is a VAT Invoice?

A VAT invoice is a specific type of invoice issued by VAT-registered businesses. It differs from a standard invoice in that it must include your VAT registration number and clearly show the VAT amount charged. Your clients who are also VAT registered can use your VAT invoice to reclaim the VAT they paid.

What a Full VAT Invoice Must Include

• The words "VAT Invoice" or equivalent
• A unique sequential invoice number
• Invoice date and tax point (usually the same)
• Your business name, address, and VAT registration number
• Your customer's name and address
• Description of goods or services supplied
• Quantity and unit price
• VAT rate applied (e.g., 20%)
• Net amount (excluding VAT)
• VAT amount
• Gross amount (including VAT)

How to Calculate VAT

VAT rates vary by country: 20% in the UK, 19% in Germany, 23% in Poland, 25% in Sweden and Denmark. Always use the rate applicable in your jurisdiction. Facture Generator lets you set any tax rate on your invoice.

When Are You Required to Register for VAT?

VAT registration thresholds vary by country. In the UK, you must register once your taxable turnover exceeds £90,000. In the EU, rules vary by member state. Always check with your local tax authority or an accountant.

Simplified VAT Invoices

In some jurisdictions, you can issue a simplified VAT invoice for transactions under a certain value (e.g., under £250 in the UK). Simplified invoices don't require the customer's details but must still show the VAT amount or rate.