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What is a vat receipt

what is a vat receipt

What is a VAT Receipt?

If you're VAT registered you will no doubt have been advised by your accountant to always obtain a VAT receipt (or invoice) from your suppliers. Many of our clients provide us with what they believe to be VAT receipts but in actual fact they're not. So.

What is a VAT receipt and why do you need it?

A VAT receipt will be provided by VAT registered suppliers to you, the customer. It will show details of the sale including the tax date, the suppliers VAT registration number and the amount paid for the goods or services. Most importantly, it will show the amount of VAT that the supplier has charged to you (if applicable). A VAT receipt can be in either paper or electronic format.

Delivery notes, letters or email correspondence are not valid VAT receipts and you cannot reclaim VAT using these documents.

To reclaim VAT on the purchases that you've acquired for your business you need to have a valid VAT receipt (or VAT invoice) as proof of the purchase and that you've paid VAT on that purchase. If you don't have a valid VAT receipt you cannot reclaim

the VAT.

What should the VAT receipt show?

  • A unique invoice number
  • The seller's name or trading name and address
  • The seller's VAT registration number
  • The invoice date
  • The tax date (the date of supply which is also known as tax point - if different from the invoice date)
  • Your name or trading name and address (i.e. the customer)
  • A description of the goods or services supplied to you
Simplified VAT receipts

VAT receipts with all of the above detail are not always necessary. Retailers can issue less detailed invoices for sales under £250 (including VAT) and are not required to issue an invoice unless the customer requests it. These need only show:

  • The seller's name and address
  • The seller's VAT registration number
  • T he date of supply (tax point)
  • A description of the goods or services supplied

If the sale includes items at different VAT rates then for each different VAT rate the simplified VAT receipt must also show:

  • The total price including VAT
  • The VAT rate applicable to the item

Category: Bank

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