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IINSIGHT Complies With UK Inland Revenue Taxation Rules
IINSIGHT Complies With UK Inland Revenue Taxation Rules
Updated over 8 months ago

Valid invoices

You’ll use a full VAT invoice for most transactions. You can use:

  • a modified invoice for retail supplies over £250

  • a simplified invoice for retails supplies under £250 - and for other supplies from 1 January 2013

Include the following on your invoice, depending on which type you use.

Invoice information

Full invoice

Simplified invoice

Modified invoice

Unique invoice number that follows on from the last invoice

Yes

Yes

Yes

Your business name and address

Yes

Yes

Yes

Your VAT number

Yes

Yes

Yes

Date

Yes

No

Yes

The tax point (or ‘time of supply’) if this is different from the invoice date

Yes

Yes

Yes

Customer’s name or trading name, and address

Yes

No

Yes

Description of the goods or services

Yes

Yes

Yes

Total amount excluding VAT

Yes

No

Yes

Total amount of VAT

Yes

No

Yes

Price per item, excluding VAT

Yes

No

Yes

Quantity of each type of item

Yes

No

Yes

Rate of any discount per item

Yes

No

Yes

Rate of VAT charged per item - if an item is exempt or zero-ratedmake clear no VAT on these items

Yes

Yes (*)

Yes

Total amount including VAT

No

Yes (*)

Yes

(*) If items are charged at different VAT rates, then show this for each.

Exceptions

There are different invoice rules if you use a VAT Margin Scheme or trade internationally.

If you use the Cash Accounting Scheme you have to stamp an invoice with the amount of cash paid and the date.

Deadlines

Usually VAT invoices must be sent within 30 days of the date of supply or the date of payment (if you’re paid in advance).

Foreign currencies

You don’t have to show all amounts on your invoices in sterling. But if there’s any VAT due you must show this in sterling.

To convert to sterling you can:

  • use the market selling rate at the time of supply

  • use the European Central Bank’s rate - from 1 January 2013

  • use HMRC’s period rates of exchange - the rates usually stay the same for each calendar month

  • apply to HMRC to use a different method to account for the VAT

This Information is an extract from the Inland Revenue website and more information can be found on:

IINSIGHT uses the line approach shown above as price per item and therefore complies with the UK Inland Revenue Taxation Rules.

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