vat
http://www.hmrc.gov.uk/vat/managing/reclaiming/vat-receipts.htm#4VAT receipts: what they have to show to be valid
If you're VAT registered, you can only reclaim VAT on purchases made for your business when you have a valid VAT invoice for the purchase.
This guide will help you make sure you can reclaim VAT on your purchases.
It explains how a VAT-registered supplier must give a VAT-registered buyer a VAT invoice if they ask for one. If a customer who is registered for VAT asks a supplier for a VAT invoice and they do not issue one, the supplier could be fined.
This guide also shows you what information must appear on valid VAT invoices such as the details of the supplier and their VAT registration number, and details of the goods or services purchased. It also tells you what are not valid VAT invoices and therefore cannot be used to reclaim VAT.
On this page:
You need a valid VAT invoice to reclaim VAT
VAT-registered suppliers must issue a VAT invoice
Information that must be shown on a valid VAT invoice
What is not a VAT invoice
Purchase invoice records and your VAT account
VAT invoices and imports
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You need a valid VAT invoice to reclaim VAT
Even if you are registered for VAT, you can only reclaim VAT (input tax) on your purchases if:
you buy an item and use it for business purposes
you have a valid VAT invoice for the purchase
Only VAT registered businesses can issue valid VAT invoices. You cannot reclaim VAT on any goods or services that you buy from a business that is not VAT registered.
Get information about reclaiming VAT
Get information about when you can reclaim VAT and when you can't
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VAT registered suppliers must issue a VAT invoice
If you are registered for VAT and do not receive a VAT invoice when you buy something from a VAT registered supplier, you should ask that supplier to give you one.
A VAT registered supplier must give you a VAT invoice if asked. If a customer who is registered for VAT asks a supplier for a VAT invoice and they do not issue one, the supplier could be fined.
There is a strict time limit on issuing VAT invoices. Your supplier must normally issue you with a VAT invoice within 30 days of the date you supply the goods or services - or if you paid in advance, the date the supplier received your payment. This is so you can claim back the VAT on the supply, if you're entitled to.
For goods, the time when the goods are considered to be supplied is the date when one of these happens:
you send the goods to the customer
the customer collects the goods from you
the goods (which are not either sent or collected) are made available for the customer to use - for example, if you are assembling something on the customer's premises
For services, the date when the services are considered to be supplied is the date when the service is carried out and all the work - except invoicing - is finished.
Find the exceptions to the 30-day rule in section 16.2.3 of VAT Notice 700
Find out what could happen if you do not issue a VAT invoice when asked to do so by a customer
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Information that must be shown on a VAT invoice
Find out what information must be shown on a VAT invoice
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What is not a VAT invoice
The following are not VAT invoices:
pro forma invoices
'this is not a tax invoice' invoices
statements
delivery notes
orders
letters, emails or other correspondence
You cannot reclaim the VAT you have paid on a purchase by using these documents as proof of payment.
Find out when transactions take place for VAT purposes
See our guide to sales and invoicing for VAT
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Purchase invoice records and your VAT account
It's a good idea to number your purchase invoices and record these numbers against the entries in your VAT account summary.
If you have a lot of invoices from one supplier - for example a number of small purchases - you do not have to record each invoice separately. For each VAT accounting period, you may keep them in batches and summarise the totals.
If the VAT rate changes you'll need to make sure that you're claiming back the correct amount of VAT, especially if you have a computerised accounting system that calculates the VAT for you. You can only claim back the amount of VAT that's shown on the invoice.
In your VAT account summary for purchases you must show separate totals as applicable for:
VAT you have been charged on your purchases
the VAT exclusive values of your purchases
VAT on imports - goods you bring in from outside the European Union (EU) and acquisitions from other EU countries
credits you have received from your suppliers
adjustments from special VAT schemes for example annual accounting
adjustments or errors in earlier returns
bad debt relief
purchases on which you cannot reclaim VAT, such as business entertainment expenses
Get information about keeping VAT records and accounts
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VAT invoices and imports
VAT is treated slightly differently on imports from outside the European Union (EU) and when you buy items (known as acquisitions) from other EU countries.
Find out about VAT on imports and acquisitions
