Getting VAT Right on Your Invoices
Accurate VAT on invoices is a legal requirement in most countries. A valid VAT invoice must include: the supplier's VAT registration number, the net amount, the VAT rate applied, the VAT amount, and the gross total. For mixed-rate invoices, each rate must be shown separately. Common scenarios include standard-rated services (e.g., 20% in the UK, 19% in Germany), zero-rated exports, and reverse-charged cross-border B2B transactions. Incorrect VAT on invoices can lead to penalties and rejected input tax claims by clients.