VAT Invoice Requirements: HMRC Checklist

Key facts

Simplified invoice allowed: £250 or less, if the customer agrees
Supplier normally issues the invoice: Within 30 days of the tax point
Total VAT shown in: Sterling
Keep VAT records for: At least 6 years

What must a full VAT invoice show?

VAT Notice 700, paragraph 16.3.1, lists the details every VAT invoice must show.

A sequential number, based on one or more series, that uniquely identifies the document.
The time of supply (tax point).
The date of issue, where different from the time of supply.
The supplier’s name, address and VAT registration number (a trading name can be used, but the registered name and address must appear somewhere on the document).
The customer’s name and address.
A description sufficient to identify the goods or services.
For each description: the quantity or extent of the services, the VAT rate and the amount payable excluding VAT (in any currency).
The gross total amount payable excluding VAT (in any currency).
The rate of any cash discount offered.
The total amount of VAT chargeable, in sterling.
The unit price, for countable goods or services such as an hourly rate.

Zero-rated or exempt items on the same invoice must show clearly that no VAT is payable, with a separate total for their value (paragraph 16.5). A supplier should normally issue the VAT invoice within 30 days of the tax point (paragraph 16.2.3).

Sources: HMRC: VAT guide (VAT Notice 700), section 16 VAT invoices, HMRC: Record keeping for VAT (VAT Notice 700/21)

Simplified and retailers’ VAT invoices (£250 or less)

A supplier can issue a simplified VAT invoice when the supply is £250 or less and the customer agrees (and, for a Northern Ireland business, the customer is not from an EU member state).

The supplier’s name, address and VAT registration number.
The time of supply (tax point).
A description that identifies the goods or services.
For each VAT rate, the total amount payable including VAT, and the VAT rate.

A retailers’ VAT invoice has the same contents, can’t include exempt supplies, and must be replaced by a full VAT invoice for transactions over £250 or when the customer asks for one (paragraph 16.6.2).

Source: HMRC: VAT guide (VAT Notice 700), section 16 VAT invoices

What if you don’t hold a valid VAT invoice?

Go back to the supplier and ask for a VAT invoice that meets the requirements. If you still can’t get one, HMRC may allow the claim on alternative evidence, at its discretion.

To use that discretion, HMRC must be satisfied that a taxable supply actually took place in the UK, from a taxable person, to the business claiming the input tax, for business use. Where you hold an invoice that doesn’t meet the requirements, you need satisfactory alternative evidence that the supply happened and was made to you (paragraphs 19.5.3 to 19.5.5).

Source: HMRC: VAT guide (VAT Notice 700), section 19.5

What AP should check before reclaiming the VAT

The supplier’s VAT registration number is on the invoice.
The invoice number, tax point and your business name and address are present (not needed on a simplified invoice).
Each line shows a VAT rate, and the total VAT is shown in sterling.
The goods or services match what you ordered and received.
For construction services under CIS, the invoice says the reverse charge applies and doesn’t add VAT to the amount you pay.
Keep the invoice: VAT records must generally be kept for at least 6 years.

Sources: HMRC: VAT guide (VAT Notice 700), section 16 VAT invoices, HMRC: Record keeping for VAT (VAT Notice 700/21), HMRC: VAT domestic reverse charge technical guide

CIS domestic reverse charge invoices for construction

For most building and construction services reported under the Construction Industry Scheme (CIS), the VAT-registered customer accounts for the VAT instead of the supplier. The supplier’s invoice must show the usual VAT invoice details, say the reverse charge applies, and must not add the VAT to the amount charged.

The invoice must include the reference “reverse charge”. HMRC’s example wording includes “Customer to pay the VAT to HMRC”, “VAT Act 1994 Section 55A applies” and “S55A VATA 94 applies”.
It should show the amount of VAT due under the reverse charge or, if the software can’t show it, the VAT rate.
You must use the reverse charge as a buyer if you’re VAT-registered, payment is reported under CIS, the supply is standard or reduced rated, you are not hiring staff or workers, and you haven’t notified the supplier in writing that you are an end user or intermediary supplier.
On your VAT return, add the reverse charge VAT to your output tax, then reclaim it as input tax under the normal rules. Do not enter the net value of the purchase as a sale.
If the reverse charge part of a single supply is 5% or less of its value, it can be disregarded (the “5% disregard”). Professional services of architects and surveyors, and supplies by employment businesses, are outside the reverse charge.

Example: subcontractor invoice to a VAT-registered main contractor (illustrative figures)
Line	Amount
Labour and materials for first-fix electrics	£10,000.00
VAT at 20% under the domestic reverse charge (shown for information, not charged)	£2,000.00
Amount payable to the subcontractor	£10,000.00
Invoice note	Reverse charge: Customer to pay the VAT to HMRC

Illustrative only. The contractor accounts for the £2,000 on its VAT return and reclaims it as input tax under the normal rules. CIS deductions from the labour element are handled separately under CIS.

Sources: HMRC: Check when you must use the VAT domestic reverse charge for building and construction services, HMRC: How to use the VAT domestic reverse charge if you buy building and construction services, HMRC: VAT domestic reverse charge technical guide

Where Aequo AP fits

Aequo AP is accounts payable automation for SMB and mid-market finance teams, with integrations for the major accounting systems and ERPs. Its Xero integration is live: approved invoices are created as bills in Xero, which stays your system of record.

Aequo AP reads the tax amount on each invoice line, includes it in the invoice total, and compares it with the tax on the matching purchase order line during two-way and three-way matching, alongside price and quantity differences.

Aequo AP does not decide whether a document is a valid VAT invoice, and it does not set the VAT rate on bills it writes to Xero, so check the VAT rate (including any reverse charge rate) on each bill line in Xero before you file.

Aequo AP does not:

Read or validate the supplier’s VAT registration number
Account for the domestic reverse charge on your VAT return
File VAT returns: it is not Making Tax Digital filing software

Frequently asked questions

What are the requirements of a VAT invoice?

A unique sequential number, the tax point, the issue date if different, the supplier’s name, address and VAT number, the customer’s name and address, a description, and for each line the quantity, VAT rate and amount excluding VAT, plus the total excluding VAT, any cash discount rate, the unit price and the total VAT in sterling.

What is a simplified VAT invoice?

A shorter invoice a supplier can issue for supplies of £250 or less if the customer agrees. It shows the supplier’s name, address and VAT number, the tax point, a description, and for each VAT rate the VAT-inclusive total and the rate.

Can I reclaim VAT without a VAT invoice?

First ask the supplier for a valid VAT invoice. If you can’t get one, HMRC may accept alternative evidence at its discretion, provided it is satisfied the supply took place and was made to you.

How long does a supplier have to issue a VAT invoice?

Normally within 30 days of the tax point. Some situations allow longer, and others need HMRC’s written agreement.

What should a reverse charge VAT invoice say?

It must show the usual VAT invoice details and include the reference “reverse charge”, for example “Customer to pay the VAT to HMRC” or “S55A VATA 94 applies”. It shows the VAT due (or the rate) but does not add it to the amount the customer pays.

Who accounts for the VAT under the CIS reverse charge?

The VAT-registered customer. It adds the VAT to its output tax on the VAT return and reclaims it as input tax under the normal rules, unless it has told the supplier in writing that it is an end user or intermediary supplier.

Does Making Tax Digital apply to purchase invoices?

MTD for VAT requires digital records of supplies you receive: for each one, the time of supply, its value and the input tax you will claim (VAT Notice 700/22, paragraph 3.3.3). You still need the VAT invoice or other evidence to support the claim.

Is Aequo AP Making Tax Digital software?

No. Aequo AP captures, matches and routes supplier invoices and creates approved bills in Xero. File VAT returns from your MTD-compatible accounting software.

Check supplier invoices before they become bills

Aequo AP captures supplier invoices, matches them to purchase orders and receipts, routes approvals and flags exceptions and duplicates, then creates the approved bill in your accounting system.

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Official sources

HMRC: VAT guide (VAT Notice 700), section 16 VAT invoices — Paragraphs 16.2.3 (30-day rule), 16.3.1 (full invoice), 16.5 and 16.6 (simplified and retailers’ invoices). Last updated by HMRC 25 June 2026; checked 24 October 2026.
HMRC: VAT guide (VAT Notice 700), section 19.5 — Paragraphs 19.5.3 to 19.5.5: claiming input tax without a valid VAT invoice. Checked 24 October 2026.
HMRC: Record keeping for VAT (VAT Notice 700/21) — Six-year retention and invoice details. Last updated by HMRC 18 March 2024; checked 24 October 2026.
HMRC: Making Tax Digital for VAT (VAT Notice 700/22) — Paragraph 3.3.3: digital records for supplies received. Checked 24 October 2026.
HMRC: Check when you must use the VAT domestic reverse charge for building and construction services — Checked 24 October 2026.
HMRC: How to use the VAT domestic reverse charge if you buy building and construction services — Checked 24 October 2026.
HMRC: VAT domestic reverse charge technical guide — Invoices, end users, the 5% disregard and VAT return entries. Last updated by HMRC 18 September 2024; checked 24 October 2026.