VAT Invoicing Guide: UK and EU Invoice Rules for 2026

If you are VAT-registered, the VAT invoice is the document your business customers rely on to reclaim input VAT, and it is your record of the output VAT you owe. When you supply standard- or reduced-rated goods or services to another VAT-registered business in the UK, you must issue one. A missing detail can delay or block your customer's claim and makes your own records harder to defend.

This guide covers the UK rules in HMRC's VAT Notice 700, the EU's equivalent in Article 226 of the EU VAT Directive, rates, cross-border scenarios and common mistakes. For a UK-only, field-by-field walkthrough with a worked invoice, see UK invoice requirements. This is general information, not tax advice.

What is a VAT invoice?

VAT invoice definition: A document issued by a VAT-registered supplier that shows the VAT charged on a supply. It lets a VAT-registered customer reclaim that VAT as input tax, subject to the normal rules, and it records the supplier's output tax.

Unlike an ordinary invoice that simply asks for payment, a VAT invoice must contain the details listed in VAT Notice 700, section 16 (UK) or Article 226 of Council Directive 2006/112/EC as implemented by each EU country. HMRC doesn't require the words "VAT invoice" or "tax invoice": what makes it a VAT invoice is its content. See tax invoice vs regular invoice for how this compares with Australia and New Zealand.

Types of VAT invoices (UK)

Type	When you can use it	What it shows
Full VAT invoice	Always; required for supplies over £250 unless you use a modified invoice, and whenever a customer asks for one	Every detail in the next section, with VAT-exclusive amounts per line
Modified VAT invoice	Supplies over £250, as an alternative to a full VAT invoice	The same details but with VAT-inclusive values
Simplified VAT invoice	Supplies of £250 or less including VAT, if your customer agrees	Your name, address and VAT number, the tax point, a description, and for each VAT rate the total including VAT and the rate; exempt supplies must not be included

Sources: VAT Notice 700, section 16, and Record keeping (VAT Notice 700/21), sections 4.4 and 4.5, as summarised in our reviewed UK invoice requirements guide.

Pro forma invoice

A pro forma invoice is a quote-style document sent before a supply. It is not a VAT invoice and can't be used to reclaim VAT. Issue a proper VAT invoice when the tax point arises.

What must a full VAT invoice include?

VAT Notice 700, paragraph 16.3.1, and EU VAT Directive Article 226 ask for largely the same details:

Detail	UK (VAT Notice 700, 16.3.1)	EU (Directive Art. 226)	Example
Invoice number	Sequential, based on one or more series, uniquely identifying the document	Same wording, 226(2)	INV-0147
Tax point / date of supply	The time of supply	Date of supply if it differs from the issue date, 226(7)	10 February 2026
Date of issue	If different from the tax point	Always, 226(1)	15 February 2026
Your name, address and VAT number	Yes	Full name and address, 226(5); VAT ID, 226(3)	Acme Ltd, 42 High St, London; GB 123 4567 89
Customer's name and address	Yes	Full name and address, 226(5)	Widget Corp, 7 Mill Road, Manchester
Customer's VAT number	Not required for domestic UK supplies	Required when the customer is liable for the VAT (reverse charge) or for intra-EU goods, 226(4)	DE 987654321
Description	Enough to identify the goods or services, with the quantity or extent	Quantity and nature, 226(6)	Web development, homepage redesign
Unit price	Price per countable unit, where normal for the sector	Unit price excluding VAT, 226(8)	£2,500.00
VAT rate and net amount	Rate and amount excluding VAT per line	Taxable amount per rate or exemption, 226(8); rate, 226(9)	20% on £2,500.00
Total excluding VAT	Yes	Per rate, 226(8)	£2,500.00
Discount	The rate of any cash discount offered	Discounts not included in the unit price, 226(8)	2% if paid within 10 days
VAT amount	Total VAT chargeable, in sterling	VAT payable, 226(10)	£500.00
Special mentions	Zero-rated and exempt items shown separately with no VAT	"Reverse charge" where the customer pays the VAT, 226(11a); exemption reference, 226(11); "Self-billing", "Cash accounting", margin schemes where they apply	Reverse charge

If one invoice mixes rates, show the net amount and VAT for each rate. Each EU country implements Article 226 in its own law, so check the reviewed country guides, for example Germany, France and Ireland.

VAT rates in the UK and EU

UK VAT rates

Rate	Percentage	Examples from GOV.UK
Standard	20%	Most goods and services
Reduced	5%	Children's car seats, home energy
Zero	0%	Most food, children's clothes, books and newspapers
Exempt	No VAT	Postage stamps, financial and property transactions

Source: GOV.UK VAT rates, accessed 28 October 2026.

Selected EU VAT rates

Country	Standard rate	Main reduced rate(s)	Reviewed guide
Germany	19%	7%	Germany
France (mainland)	20%	10%, 5.5%	France
Italy	22%	10%, 5%, 4%	Italy
Spain	21%	10%, 4%	Spain
Netherlands	21%	9%	Netherlands
Ireland	23%	13.5%, 9%	Ireland

Each rate is taken from the national tax authority or legislation cited in the linked guide, reviewed in October 2026. Rates change with national budgets; the European Commission's VAT rates page links to current information for every member state.

Key VAT invoicing scenarios

Selling to UK businesses (domestic B2B)

Charge VAT at the correct rate and issue a full (or, over £250, modified) VAT invoice within 30 days of the tax point. Your customer uses it to reclaim input VAT on their return.

Selling to UK consumers (domestic B2C)

You still charge VAT, but consumers can't reclaim it. The duty in VAT Notice 700, paragraph 16.2.1, is to give a VAT invoice to VAT-registered customers. Retailers can give a simplified or retailers' VAT invoice for sales of £250 or less if a customer asks.

Selling services to EU businesses

For most business-to-business services, the place of supply is where the customer belongs (VAT Notice 741A). So a UK supplier invoicing an EU business customer usually charges no UK VAT, and the customer accounts for VAT in their own country under the reverse charge. On the invoice:

show the net amount with no UK VAT
include the customer's VAT number (check it on VIES)
add a note such as "Reverse charge: customer to account for VAT", which is what Article 226(11a) requires on EU invoices and what EU customers expect

Some services follow special rules, for example land-related services, admission to events and some B2C digital services. Check Notice 741A before you invoice.

Selling goods to EU consumers

Goods you export from Great Britain to a customer outside the UK can generally be zero-rated for UK VAT if you meet the conditions and keep evidence of export (VAT Notice 703). Import VAT and customs then arise in the EU country, under EU rules. Northern Ireland has separate rules for goods. Take advice before selling goods to EU consumers at volume.

Intra-EU transactions (for EU-based businesses)

Between EU member states, B2B services under the general rule and intra-EU supplies of goods to a VAT-registered customer are invoiced without the supplier's VAT, with the customer's VAT number and the relevant mention, and the customer accounts for the VAT. EU suppliers also report these sales on a recapitulative statement (EC Sales List). The country guides linked above cover each country's wording.

How to handle mixed-rate invoices

When one invoice includes items at different rates, separate them so each rate has its own net total and VAT:

Item	Net price	VAT rate	VAT amount	Gross
Web development	£2,500.00	20%	£500.00	£3,000.00
Printed book	£15.00	0%	£0.00	£15.00
Totals	£2,515.00		£500.00	£3,015.00

Zero-rated and exempt items must show clearly that no VAT is payable on them, with a separate total. Alternatively, issue separate invoices per rate.

VAT invoice timing rules

In the UK you must normally issue a VAT invoice within 30 days of the tax point. For services, the basic tax point is usually when the work is completed; for goods, usually when you send them or the customer collects them. Receiving payment or issuing a VAT invoice before that date creates an earlier tax point, and if you issue the invoice within 14 days after the basic tax point, the invoice date becomes the tax point (VAT Notice 700). Continuous supplies of services, such as retainers, follow separate rules in the same notice.

Issuing an invoice late doesn't move the VAT: you account for it in the VAT period that contains the tax point.

Common VAT invoicing mistakes

1. Missing or incorrect VAT numbers

An invoice without your VAT number, or with the wrong one, is not a valid VAT invoice for your customer's claim. For EU B2B services, check the customer's VAT number on VIES and keep the result.

2. Wrong VAT rate

Charging the standard rate on a zero-rated or reduced-rated supply overcharges your customer, and the fix is a credit note and a corrected invoice. Check rates on specific goods and services: for example, most food is zero-rated but catering and hot takeaway food are standard-rated.

3. Not separating VAT by rate

A single VAT total across mixed-rate items is not enough. Show each rate with its net amount and VAT.

4. Using pro forma invoices for VAT claims

A pro forma is not a VAT invoice. Issue a proper VAT invoice when the supply takes place.

5. "Revised invoices" instead of credit notes

To reduce or cancel a VAT invoice you've issued, send a credit note that references the original invoice, rather than a replacement invoice with the same number.

6. Invoicing before the tax point

Issuing a VAT invoice before you deliver the goods or perform the services creates a tax point on the invoice date, so you owe the VAT for that period even if you haven't been paid. Watch the timing on large orders.

Digital record-keeping: Making Tax Digital

UK VAT-registered businesses must keep digital VAT records and file VAT returns using compatible software, with digital links between the records and the return (VAT Notice 700/22). Your invoices can be PDFs or paper (VAT Notice 700/63); what matters is that their details end up in digital records that feed your return.

Setting up VAT invoicing in InvoiceQuickly

InvoiceQuickly can produce a simple single-rate VAT invoice as a PDF, as long as you add what it doesn't print:

Currency: invoice in GBP, EUR or one of the other supported currencies (USD, CAD, AUD, INR, PKR). There is no automatic conversion, so for a euro invoice with UK VAT you must work out and show the sterling VAT yourself, for example in the notes.
Tax: one tax percentage per invoice, calculated on the discounted subtotal and printed as "Tax (20%)", not "VAT". There are no per-line rates, so mixed-rate invoices need separate invoices. A 0% tax line is not printed, so add a note for zero-rated or reverse-charge invoices.
VAT numbers: new invoice PDFs copy your saved business tax ID and the selected saved client's tax ID. Type both VAT numbers, the tax point and any "Reverse charge" wording into the invoice notes.
Not available: e-invoicing formats (such as Peppol), automatic rate selection, and Making Tax Digital submissions. Use MTD-compatible software for your VAT returns.

InvoiceQuickly does not decide the correct rate or check compliance; review each invoice against the lists above. Cross-check with our invoice checklist and how to write an invoice.

Last reviewed: 28 October 2026 against HMRC VAT Notice 700 and Council Directive 2006/112/EC, Article 226. General information only, not tax advice.

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