Keeping records, invoicing and accounting for VAT

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What counts as a valid VAT receipt?

What counts as a valid VAT receipt?

If you are VAT registered, you can only reclaim VAT on purchases made for your business when you have a valid VAT invoice for the purchase.

Read this guide to help ensure you can reclaim VAT on your purchases.

It explains how a VAT registered supplier must give a VAT registered buyer 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.

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

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.

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

See an example of a VAT invoice in VAT Notice 700/21

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.

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 - ie from outside the European Community (EC) and acquisitions from other EC 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

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