How to Write a VAT Invoice

A VAT invoice is an invoice that contains the details tax authorities require so your customer can reclaim the VAT. The rules in the EU come from the VAT Directive; the UK has very similar rules set by HMRC. Here is a practical walkthrough.

Step 1: Your details and VAT number

Show your full name or business name, address and VAT identification number. In the EU, VAT numbers start with a country code, such as NL, DE or FR.

Step 2: Invoice number and dates

Use a unique, sequential invoice number, the date of issue, and the date of supply if it is different.

Step 3: Customer details

Add the customer's name and address. For cross-border B2B supplies within the EU, the customer's VAT number is required too; check it in the European Commission's VIES service.

Step 4: Line items

Describe the goods or services clearly, with quantity and unit price excluding VAT. Show any discounts.

Step 5: VAT calculation

For each VAT rate, show the taxable amount, the rate and the VAT amount. Example: €1,000 at 21% gives €210 VAT and a total of €1,210. Always show VAT in the currency of the member state where it is due (or its equivalent).

Step 6: Special cases

Reverse charge: no VAT is charged; add the note "Reverse charge" and both VAT numbers.
Exempt supplies: refer to the exemption that applies.
Zero-rated exports: show 0% and keep proof of export.

Common mistakes

Missing the customer's VAT number on reverse-charge invoices
Rounding VAT per line in a way that doesn't match the total
Changing a sent invoice instead of issuing a credit note

The Billowly generator has VAT number fields, a VAT rate field and a reverse-charge option that adds the right note automatically.

FAQ

What makes an invoice a VAT invoice?

It includes your VAT number, the VAT rate and amount, and the other mandatory details, so the buyer can reclaim the VAT.

Can I issue a VAT invoice if I am not VAT registered?

No. Without a VAT registration you must not charge VAT or show a VAT number. Issue a normal invoice instead.

How long do I have to issue a VAT invoice?

In the EU, invoices for cross-border B2B supplies must be issued by the 15th day of the month after the supply. Domestic deadlines vary by country; in the UK the usual limit is 30 days.

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