How tax works on invoices in United Kingdom
In United Kingdom, VAT is currently 20% by default, and prices are usually shown inclusive of tax. Registered businesses show their VAT number on the invoice. You can change the rate or turn tax off if it does not apply to you.
What a UK VAT invoice must include
- Your business name, address, and VAT registration number.
- A unique, sequential invoice number and the invoice date (tax point).
- The customer’s name and address.
- A description of goods or services with quantity and unit price.
- The rate of VAT per line and the total VAT in pounds sterling.
- The total amount excluding VAT and the amount payable.
UK VAT rates
The standard UK VAT rate is currently 20%, with a reduced rate of 5% and a zero rate for certain goods. If you are not VAT registered, turn the VAT line off. You must not charge VAT without a registration number.
How to create an invoice in United Kingdom
- Add your business name, logo, and contact details.
- Set the currency (GBP), which is applied automatically for United Kingdom.
- List your items with quantities and rates.
- Apply VAT if you are registered, then download the PDF.