What Makes a Valid VAT Receipt in the UK?

In the UK, a "VAT receipt" that lets a VAT-registered business reclaim VAT is really a VAT invoice. HMRC says the VAT invoices you receive are the primary evidence for recovering the VAT you've paid as input tax. For purchases of £250 or less (including VAT), a simplified VAT invoice is enough. It must show the supplier's name, address and VAT registration number, the time of supply (tax point), a description of the goods or services, and, for each VAT rate, the total amount payable including VAT and the VAT rate charged. Above £250 you generally need a full or modified VAT invoice with more detail.

These rules come from HMRC's VAT Notice 700/21 (Record keeping for VAT), sections 3 and 4. Below is what each type of invoice must show, how to tell whether a till receipt qualifies, and how to keep them. It's general information, not tax advice. VAT has many special cases, so check the notice or ask an accountant for anything unusual.

Who this applies to

These rules matter if you are VAT-registered and want to reclaim the VAT on business purchases. If you aren't VAT-registered, you can't reclaim VAT. You still keep receipts as evidence of business expenses for income tax, but the VAT invoice details are less critical.

HMRC also notes that only VAT-registered businesses can issue VAT invoices. A receipt from a supplier who isn't VAT-registered won't show a VAT number or VAT, and there's no VAT to reclaim on it.

Full VAT invoice: what it must show

According to section 4.1 of VAT Notice 700/21, a full VAT invoice must show:

• a sequential number that uniquely identifies the document
• the time of supply (tax point)
• the date of issue, if different from the time of supply
• the supplier's name, address and VAT registration number
• the name and address of the customer
• a description sufficient to identify the goods or services
• for each description, the quantity of goods or extent of services, the rate of VAT and the amount payable excluding VAT
• the gross total amount payable, excluding VAT
• the rate of any cash discount offered
• the total amount of VAT, expressed in sterling
• the unit price

Special rules apply to margin schemes and reverse charge supplies, and businesses in Northern Ireland invoicing EU customers must show extra details.

Simplified VAT invoice (£250 or less)

For a supply of £250 or less including VAT, sections 4.4 and 4.5 of the notice allow a simpler invoice. It shows:

• the supplier's name, address and VAT registration number
• the time of supply (tax point)
• a description that identifies the goods or services
• for each VAT rate, the total amount payable including VAT and the VAT rate charged

Exempt supplies must not be included on this type of invoice.

This is the format most till receipts from VAT-registered shops, cafés and petrol stations follow. Notice that a simplified invoice doesn't have to show the VAT amount separately or your business name. It shows the VAT-inclusive total and the rate.

Retailers and "VAT receipts"

Section 4.4 says retailers don't have to issue a VAT invoice for retail sales to unregistered customers, and may assume one isn't needed unless the customer asks. If you're asked for a VAT invoice:

• for £250 or less, the retailer can issue the simplified invoice described above
• for more than £250, the retailer must issue a full VAT invoice or a modified VAT invoice (showing VAT-inclusive rather than VAT-exclusive values)

So if your normal till receipt doesn't show the shop's VAT number, or the purchase was over £250, ask for a VAT invoice at the till or from the retailer's customer service. Many online retailers let you download a VAT invoice from your order history.

Quick checklist: does this receipt qualify?

For a purchase of £250 or less, check that the receipt shows:

1. the supplier's name and address
2. their VAT registration number
3. the date (time of supply)
4. what was bought
5. the total including VAT, and the VAT rate

If the VAT number is missing, it isn't a valid VAT invoice, even if the receipt says "VAT included".

For more than £250, check for the full or modified invoice details above, including your business name and address.

Keeping VAT invoices

Keep a copy of every invoice you issue and receive

Section 3.2 says you must keep a copy of every VAT invoice you issue, and that you should keep the VAT invoices you receive in a way that lets you find them easily when asked.

Digital copies

Section 6 of the notice explains when a digital copy can replace the paper. If you scan an invoice and keep the image, and the image contains all the detail required for VAT, you don't need to keep the paper original, unless it's needed for another purpose. But if you only type selected figures into software, that data isn't a copy of the invoice, and you must keep the original. Some documents, such as the C79 import VAT certificate, must be kept in their original form. See can you throw away receipts after scanning?

Making Tax Digital

The notice also says VAT-registered businesses must keep certain VAT records digitally, in functional compatible software. Keep your invoices organized so the figures in your software can be traced back to them.

Recording VAT from receipts

For each purchase you reclaim VAT on, record:

For simplified invoices that only show the gross amount and rate, you can work out the VAT from them. For example, at 20%, VAT is one-sixth of the VAT-inclusive total. Check that your software or accountant uses the same method.

If you have a stack of receipts to process, ReceiptBatch can extract VAT from UK receipts into Excel, putting the date, supplier, net, VAT and gross into separate columns for each receipt. It reads what's printed. It can't tell you whether a receipt meets HMRC's rules, so use the checklist above, and keep the original images as your evidence.

For the difference between invoices and receipts more generally, see invoice vs receipt.

FAQ

Can I reclaim VAT without a VAT receipt?

HMRC describes the VAT invoices you receive as the primary evidence for recovering input tax. Reclaiming without one is a matter for HMRC's rules on alternative evidence. Check the guidance or ask an accountant before relying on it.

Is a card payment slip a VAT receipt?

Usually not. The card terminal slip normally shows only the amount paid. Keep the itemized till receipt or VAT invoice that shows the supplier's VAT number.

Does a VAT receipt need my name on it?

A simplified invoice (£250 or less) doesn't need the customer's name and address. A full VAT invoice does.

How long should I keep VAT records?

HMRC sets retention periods for VAT records. Check VAT Notice 700/21 for the current period and any exceptions, and see how long to keep receipts for income tax record periods.

Is this tax advice?

No. It's a general summary of HMRC's VAT Notice 700/21. VAT has many special cases, including margin schemes, reverse charge, imports and partial exemption, so confirm with an accountant or HMRC.