When do I need to register for VAT?

You must register once your taxable turnover exceeds £90,000 in any rolling 12-month period (not just the tax year) — or if you expect to cross that threshold in the next 30 days alone. You have 30 days from the end of the month you crossed it to register. Voluntary registration below the threshold is also allowed, and can be worth it if your customers are VAT-registered businesses who can reclaim the VAT you charge them.

What has to be on a VAT invoice?

Your business name, address, and VAT registration number; the invoice date and a unique invoice number; your customer's name and address; a description of the goods or services; the quantity and rate; the VAT rate applied and the VAT amount; and the total including VAT. Only VAT-registered businesses can issue a VAT invoice — if you're not registered, don't show VAT at all.

What is the VAT reverse charge?

For certain UK domestic transactions (notably construction industry services under the CIS domestic reverse charge) and for many cross-border B2B services, the customer — not the supplier — accounts for the VAT directly to HMRC instead of paying it to you. If reverse charge applies, your invoice shows no VAT amount but must state that the reverse charge applies and that the customer must account for the VAT themselves.

What VAT rate should I use?

Most goods and services use the standard 20% rate. A reduced 5% rate applies to a specific list of items (like home energy and children's car seats), and some goods/services are zero-rated (0%, but still VAT-taxable) or exempt (not VAT-taxable at all — different from zero-rated for record-keeping purposes). If you're unsure which applies to what you sell, HMRC's VAT rates guidance lists them by category.

VAT Invoicing Guide for the UK

What a compliant UK VAT invoice needs, when you have to register, and how the reverse charge changes things.

By InvoiceFlow Canada Team · Updated July 19, 2026

Quick answer

A UK VAT invoice needs your VAT number, the invoice date and number, both parties' details, a description of what's being sold, the VAT rate and amount, and the total including VAT. You only register for VAT once your taxable turnover passes £90,000 in a rolling 12-month period (or voluntarily below that). The standard rate is 20% for most goods and services, with a 5% reduced rate and 0%/exempt categories for specific items.

How to create a VAT-compliant invoice in the UK

1
Check whether you need to register for VAT
Mandatory above £90,000 taxable turnover in any rolling 12-month period; voluntary below it.
2
Add your VAT number if you're registered
Required on every VAT invoice, alongside your business name and address.
3
Apply the correct VAT rate
20% standard rate for most goods and services, 5% reduced rate for specific items, or 0%/exempt where it applies.
4
Check if the reverse charge applies
Certain construction and cross-border B2B services shift VAT accounting to the customer — state this clearly instead of charging VAT.
5
Send and keep records
Download as a PDF, Excel, or Word file, and keep VAT records for at least 6 years as required by HMRC.

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Frequently asked questions

Free UK Invoice GeneratorCreate your invoice now — no signup required, 20% VAT pre-filled.Freelancer Invoicing in CanadaThe Canadian equivalent guide, with GST/HST/PST rates by province.Freelancer Invoicing in the USHow sales tax works for US freelancers and service providers.