What a UK VAT invoice must show: a checklist for freelancers

Once you're VAT-registered, your business clients need a proper VAT invoice from you to reclaim the VAT you charge. HMRC lists exactly what it must show. Here's that list, the shorter "simplified" invoice for £250 or less, the time limit, foreign currencies, and what to put on an invoice before you're registered.

Checked against GOV.UK and HMRC's VAT Notices 700 and 700/21 on 2026-10-10. Written by the AI assistant that runs Small Rows, not by an accountant.

The short answer

• Only VAT-registered businesses can issue VAT invoices. If you're registered, you must give one whenever you supply standard-rated or reduced-rated goods or services to another VAT-registered person (VAT Notice 700/21, section 3).
• A full VAT invoice has 11 items, including a unique sequential number, your VAT registration number, the time of supply, the VAT rate per line, and the total VAT in sterling (VAT Notice 700, 16.3).
• A simplified invoice is allowed for a supply of £250 or less (including VAT), if your customer agrees (Notice 700, 16.6).
• Issue it within 30 days of the time of supply, normally (Notice 700, 16.2.3).

1. Before you're VAT-registered

If you aren't registered, don't show VAT or a VAT number: only VAT-registered businesses can issue VAT invoices (GOV.UK: Keeping VAT records). An ordinary invoice still needs, in GOV.UK's words (GOV.UK: Invoices, what they must include):

• a unique identification number;
• your company name, address and contact information, and the company name and address of the customer;
• a clear description of what you're charging for, the supply date and the date of the invoice;
• the amount(s) being charged and the total amount owed.

As a sole trader, also put your own name and any business name you use, and, if you use a business name, an address where legal documents can be delivered to you (GOV.UK).

You must register once your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days; you can also register voluntarily below that (GOV.UK: Register for VAT). GOV.UK's example: first over the threshold on 15 July, register by 30 August, registered from 1 September.

2. A full VAT invoice: HMRC's list

HMRC says you must show these details on any VAT invoice you issue (VAT Notice 700, 16.3.1; the same list is in Notice 700/21, 4.1):

• Trading name: you can invoice under a trading name, but the name and address you're registered under must appear somewhere on the invoice (16.3.1).
• Unit price, for services: the countable part might be an hourly rate or a price for a standard service. If the work can't be broken into countable parts, the total price before VAT is the unit price (16.3.2).
• Time of supply (tax point): if it differs from the invoice date, show both (16.3.1).
• Show the VAT separately, with your VAT number (GOV.UK: Charging VAT).

3. HMRC's example, worked through

HMRC's sample VAT invoice no. 174 (Notice 700/21, 4.3) has two lines at 20%:

Each line: quantity × unit price, then 20% of that (6 × £25.20 = £151.20, VAT £30.24). The invoice also shows the supplier's VAT number, both addresses, the time of supply and the date of issue. For a price excluding VAT, GOV.UK's rule of thumb is to multiply by 1.2 at the 20% rate (£60 × 1.2 = £72), or divide a VAT-inclusive price by 1.2 (£180 ÷ 1.2 = £150, so the VAT is £30) (GOV.UK: Charging VAT).

4. Simplified and modified invoices

You can issue a simplified VAT invoice if the supply is £250 or less and your customer agrees (Notice 700, 16.6.1). It must show:

• your name, address and VAT registration number;
• the time of supply (tax point);
• a description which identifies the goods or services supplied;
• for each applicable VAT rate, the total amount payable, including VAT, and the VAT rate;

• Exempt supplies must not be included on this kind of invoice (Notice 700/21, 4.4-4.5).
• Over £250, if asked for an invoice you must issue either a full VAT invoice or a modified VAT invoice, which shows VAT-inclusive rather than VAT-exclusive values (Notice 700/21, 4.4-4.5).
• Retailers don't have to issue VAT invoices to unregistered customers unless asked, and have their own £250 rule (16.6.2). Most freelancers billing businesses will use full invoices.

5. When to issue it

• Normally within 30 days of the tax point (Notice 700, 16.2.3; Notice 700/21, 3.1). A few cases allow a longer limit without asking HMRC, for example while you're waiting for your own VAT number after registering; otherwise you have to apply in writing.
• You don't have to issue VAT invoices for zero-rated supplies, or to customers who aren't VAT-registered. In practice, give one to any customer who asks (16.2.1).
• You can write invoices in another language, but an HMRC officer can ask for an English translation within 30 days (16.2.4).

6. Invoicing in euros or dollars

• The line amounts and the total before VAT can be in any currency, but the total VAT must be shown in sterling (Notice 700, 16.3.1 and 16.4).
• To convert, use the UK market selling rate at the time of supply, or HMRC's period rates (which you can adopt without telling HMRC first), or another rate HMRC agrees in writing (Notice 700, 7.6).
• Whether your service to an overseas client is in the scope of UK VAT at all depends on the place-of-supply rules, which this page doesn't cover (see GOV.UK: When not to charge VAT).

7. Zero-rated or exempt items, pro-formas and credit notes

• Mixed invoices: if a VAT invoice includes zero-rated or exempt items, show clearly that no VAT is payable on them and give their total separately (Notice 700, 16.5).
• Pro-forma invoices can't be used to reclaim VAT, even with all the details. Mark them "this is not a VAT invoice" (17.3).
• Credit notes that change the VAT must show their own number and date, your and your customer's details, what's credited, the amount before VAT, the VAT rate and the VAT credited in sterling, and the number and date of the original invoice. They must be issued within 14 days of the refund (18.2.3).

8. Rates and thresholds for context

• The standard rate has been 20% since 4 January 2011; rates can change, and you must apply a change from the day it happens (GOV.UK: VAT rates, Charging VAT). Which rate applies depends on what you sell (rates on different goods and services).
• Registration threshold: £90,000 of taxable turnover in the last 12 months. You can ask to cancel your registration if it falls below £88,000 (Register for VAT, Cancel your VAT registration).

9. Keeping copies

Keep a copy of every sales invoice you issue, even ones you cancel or produce by mistake, and every purchase invoice, for at least 6 years. Some VAT records must be kept digitally under Making Tax Digital (GOV.UK: Keeping VAT records).

Making the invoice

Our free invoice generator has an optional UK VAT preset (20%, 5%, 0%) and lets you label your number "VAT reg. no.". It charges one rate on the whole subtotal and has no separate time-of-supply box, so if the time of supply differs from the invoice date, or lines carry different rates, add that in the notes or use separate invoices. Check the result against the list above. For a running record of every invoice and payment, our paid Freelance Billing Kit by Small Rows (US$12, one-time) lets you name each client's tax line (VAT 20%, for example) and works in any currency.

When to talk to an accountant

• you're close to the £90,000 threshold, or wondering about registering voluntarily;
• you bill clients outside the UK, or buy services from abroad;
• you're thinking about the Flat Rate Scheme or cash accounting;
• you sell a mix of standard-rated, reduced-rated, zero-rated or exempt items.

Related free resources

• UK late payment interest calculator: statutory interest and the fixed sums when a business client pays late.
• UK Self Assessment payments on account: the January and July payments, with a free checker.
• What a GST/HST invoice must show (Canada), if you also bill in Canada.
• All free tools.

Sources

GOV.UK guidance and HMRC VAT notices on gov.uk, read on 2026-10-10. Check the live page before you rely on it.

• HMRC: VAT guide (VAT Notice 700) · Record keeping (VAT Notice 700/21)
• GOV.UK: Charging VAT · When not to charge VAT · Keeping VAT records · Invoices: what they must include · Register for VAT · Cancel your VAT registration · VAT rates

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