What is a VAT invoice? Requirements, examples and tips

VAT invoice vs ordinary invoice

A VAT invoice (called a tax invoice in many countries) is issued by a business registered for VAT or GST. It shows the tax in enough detail for a registered customer to reclaim it. If you are not registered, you send an ordinary invoice with no tax and no tax number.

What a VAT invoice usually includes

• The words "VAT invoice" or "Tax invoice", where the country requires them.
• A unique, sequential invoice number and the date of issue.
• The date of supply (tax point) if it differs from the invoice date.
• Your name, address and VAT registration number.
• Your customer's name and address, and their VAT number for many business-to-business or cross-border sales.
• For each line: description, quantity, unit price excluding VAT, VAT rate and amount.
• The total excluding VAT, the VAT total for each rate, and the total payable.
• The VAT amount in the local currency if you invoice in a foreign currency.

Simplified VAT invoices

Many countries allow a shorter invoice for small sales or for customers who are not registered. Examples: up to £250 in the UK, up to S$1,000 in Singapore, up to AED 10,000 in the UAE, and abridged tax invoices of R50 to R5,000 in South Africa. Check the limit where you trade.

Prices that include VAT

If your price already includes VAT, the invoice still has to show the VAT inside it. The net price is the gross price × 100 ÷ (100 + rate). At 20%, a price of 120 contains 20 VAT, not 24. Fliss Invoice works this out for you when you mark a price as "incl. VAT".

Reverse charge and zero-rated sales

For many business-to-business services across borders, the customer accounts for the VAT ("reverse charge"). You show 0% and add a note such as "VAT reverse charge". Exports of goods are usually zero-rated. Both still need a proper invoice.

E-invoicing is spreading

More countries now require VAT invoices to be sent through approved e-invoicing networks, for example the UAE from 2027 and Singapore's InvoiceNow, and India's e-invoicing for larger businesses. Check whether a mandate applies to you.