2 min read
Definition
A VAT invoice is an invoice that meets HMRC's requirements for showing VAT — including the supplier's VAT number, the VAT rate and amount, and specific details — so the customer can reclaim the input VAT.
In plain terms
It is not just any invoice: to reclaim VAT you need a proper VAT invoice with the right information. Missing the supplier's VAT number or the VAT breakdown means the customer cannot reclaim.
Why it matters for your company
Issuing and keeping valid VAT invoices is a legal requirement and the evidence HMRC demands for every reclaim. Sloppy invoicing costs your customers their reclaim and exposes you to assessments — see completing a VAT return.
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