Invoicing: what you need to do to comply with the law

If you sell a customer a product or service, you will need to give them an invoice (bill) by law if both you and the customer are registered for VAT (a business to business transaction). An invoice is not the same as a receipt, which is an acknowledgement of payment.

Legally your invoice must contain the following details:

  • Your company name

  • Company address

  • Contact information

  • The date the goods or service were provided

  • The date of the invoice

  • VAT number

  • Company number

  • The amount(s) being charged

  • VAT amount (if applicable)

  • Total amount owed

  • When they need to pay you

If you're a sole trader, you will also need to include:

  • Your name and business name used

  • An address where any legal documents can be delivered to you if you are using a business name

If your company if a limited company, you must include the full company name as it appears on the certificate of incorporation.

If you decide to put names of your directors on your invoices, you must include the names of all directors.

There are various online systems you can use that will make invoicing easier. You can even personalise these invoices to display your logo, company colours and business details, giving your invoices a more professional look.

If you would like more information on this or have any queries with anything related to this article, please get in touch on 01268 770099.