Tax invoice and VAT invoice requirements

General information only. This page summarises official guidance so you know what to look for. It is not tax, legal or accounting advice, and rules change. Check the linked official source or a qualified adviser for your situation.

United Kingdom (HMRC)

According to HMRC, a full VAT invoice must show:

• a unique invoice number that follows on from the last invoice;
• your business name and address, and your VAT registration number;
• the invoice date, and the time of supply (tax point) if different;
• your customer’s name or trading name, and address;
• a description of the goods or services;
• for each item: unit price or rate excluding VAT, quantity, VAT rate and amount excluding VAT;
• the total amount excluding VAT, any discount, and the total amount of VAT.

Retailers may issue a simplified VAT invoice when the total including VAT is £250 or less. VAT invoices should normally be issued within 30 days of the supply. Sources: HMRC VAT guide (VAT Notice 700) and GOV.UK: Invoices – what they must include.

European Union (VAT Directive)

Article 226 of Council Directive 2006/112/EC lists the details required on a VAT invoice, including:

• date of issue and a sequential number, based on one or more series, that uniquely identifies the invoice;
• the supplier’s VAT identification number, and the customer’s where they are liable for the tax (for example under the reverse charge) or for intra-EU supplies of goods;
• full names and addresses of supplier and customer;
• quantity and nature of goods, or extent and nature of services;
• date of supply or payment on account, if different from the invoice date;
• taxable amount per rate or exemption, unit price excluding VAT, and any discounts or rebates not included in the unit price;
• the VAT rate applied and the VAT amount payable;
• wording such as “Reverse charge” or a reference to the exemption, where applicable.

Member states may allow simplified invoices (Article 226b) for amounts up to €100 and in some other cases. Each country transposes the Directive into national law and may add its own requirements, such as e-invoicing mandates, so check your national tax authority as well.

United States (IRS and states)

The US has no federal VAT or GST, and no federal list of mandatory invoice contents. Two things still apply:

• Records: the IRS expects businesses to keep supporting documents such as invoices, receipts and deposit records, and generally to keep records for three years, longer in some cases (IRS: What kind of records should I keep; How long should I keep records).
• Sales tax: collected under state and local rules. If you’re required to collect it, show it as a separate line. Your state’s department of revenue sets the rates and what is taxable.

An invoice applies one flat sales-tax rate to the whole bill; US income tax on those earnings works in brackets, which ahaboo lets you watch fill layer by layer.

Australia (ATO)

GST-registered businesses must provide a tax invoice when a customer asks, and buyers need one to claim GST credits on purchases over A$82.50 (including GST). It must say “Tax invoice” and show your ABN, among other details (ATO: Tax invoices).

Making a tax invoice here

In the invoice generator, rename the tax line to VAT or GST, enter the rate, add your VAT number under “Tax / VAT / business no.” and your customer’s where required. Untick “Taxable” on exempt or zero-rated lines. Add a custom field for the tax point or “Reverse charge” wording. The generator applies one tax rate per document; if you supply at several VAT rates on one invoice, issue separate invoices or use accounting software that breaks VAT down by rate.