Recently I’ve been chasing up some Vat invoices on behalf of one of my clients and I’m shocked at companies that don’t know how to produce a correct Sales Vat Invoice for their business – even those with accounts departments. Goodness knows how they are accounting for their Vat therefore. I previously wrote a post on Bloggertone about helping to prevent Vat fraud by making sure your invoices are correct and some of the information below will be the same.
Here are some tips to ensure your invoices are actually valid for VAT purposes. The points marked with a ** are compulsory for VAT invoices.
- Your company name, address and contact details should be on the invoice **
- Your VAT number must be on the invoice if you are VAT registered **
- There must be a date on the invoice. **
- There should be an invoice number that runs consecutively from your system. **
- Your customer’s registered company name and address should be on the invoice. **
- A description of the service/product sold must be on the invoice. **
- The VAT amount must be shown. **
- A total for the invoice must be shown and a currency sign, e.g. €, £, $. **
- Use headed paper, preferably with a company logo that is coloured.
- Print your invoices on special paper rather than the normal copying printer paper.
- Two-part or three-part invoice paper is great as your copy will match the customers copy. On the three-part invoice the third sheet may also be a delivery note if applicable.
- Your company registration number should be on the invoice if you are a Limited company.
- Decide on an invoice layout and keep to it.
- A net amount before VAT will be shown.
- The VAT percentage rate will be shown.
- Payment terms should be on the invoice.
- Show any other information that is applicable, e.g. delivery date, item prices etc.
- Ensure a hard copy invoice is posted even though you may have emailed it – this isn’t compulsory but does help sometimes to get payments quicker and to confirm delivery etc.
If you are not VAT registered you cannot charge VAT on your invoice.
I hope you have found the above helpful.