VAT and Simplified Invoices

If you are a small retailer you are right in thinking that the standard VAT rules leave you with rather a lot of information to include on that till receipt.

There is a simpler way though - you can take advantage of the simplified VAT invoice rules which apply where you make retail sales and you make a sale of goods or services for £250 or less including VAT.

When a customer asks for a VAT invoice, you can issue a simplified version that only needs to show your name and address, your VAT reg number, the date of supply (the tax point) and a description of the goods or services. A full breakdown of the goods purchased and VAT applicable is not required.

For each different VAT rate your simplified VAT invoice must also show the total price including VAT and the rate applicable to the item. If you accept credit cards, then you can create a less detailed invoice by adapting the sales voucher you give the cardholder when you make the sale. It must show the six pieces of information described above and you must ensure you keep copies of any less detailed invoices you issue.