VAT sale invoice

VAT sale invoice is to be sent to your customers once your company has been issued with a certificate of VAT registration from HM Revenue and Customs (HMRC).

Usually bookkeeping software comes with a standard VAT invoice template. If you have not yet found a suitable bookkeeping software for your business, you may create a VAT sale invoice using Microsoft word document or Microsoft excel spreadsheet.

VAT sale Invoice template

Your sale invoice must include the following information:

  • Your VAT numbers
  • The date of supply – the day when the sale occurred.
  • Type of supply – description of your products and services sold to your customers.
  • Invoice reference number – this reference number must be in chronological order.
  • Total invoice amount including the VAT charge.
  • The VAT amount and the percentage added to the selling price must be displayed separately.

Simple layout of VAT sale invoice

Below is the example of standard layout of sale invoice on what information is required of VAT registered company.

Invoice Date: 02 February 20XX

Invoice number: 0000018

Your company name
business address
Telephone and email

Your VAT numbers: GB123456789

1Dormant company account filing£250
2Confirmation statement filing£220
Net amount£470
20% VAT£94
Total amount£564

VAT return

Your company is required to submit VAT returns with HMRC.

HM Revenue and Customs will specify your VAT return quarter end date and due date in your VAT registration certificate. Generally, HMRC will set your company to deliver four VAT returns per year, on a quarterly basis unless you applied for VAT annual accounting scheme. Subsequently, your company only required to deliver one VAT return per year.

You are to submit your VAT return to HMRC online.

Seek accountants advice or contact HMRC directly if you have any questions filing your VAT return online.

Companies House filings

In addition to filing your VAT return, you must deliver company accounts and confirmation statement to Companies House.

Sale transaction

A sale transaction is made when your customers agreed to buy your products and services.

Your sale transaction must be recorded and included in your company account. Let start with your sale invoice to be sent to your customers. There are some of the basic records you need to maintain for your limited company.


Every time you make a sale, you should produce an invoice or receipt, even if you are selling for cash. Your sale Invoice should be in sequential number and filed accordingly and be kept for a couple of years.

You must then transfer the information from the sale invoice to your accounting system. The following information should be recorded for every sale transaction you made for accounting purposes.

  1. Date of the invoice,
  2. The name of the customer.
  3. The invoice reference number.
  4. Amount of the sale, including VAT
  5. The amount of the VAT element
  6. The amount of the sale excluding VAT, net sale.

You do not have to breakdown your sale amounts into the VAT element and net amount if your company is not VAT registered.

The date of payments received from your customers and method of payments whether by cash or bank transfer or by cheque must also be recorded.

Companies giving credit to their customers, it may be wise to maintain a list of customers that have not yet paid and use this list as a checklist to ensure you are collecting from monies your customers when the invoice fall due.

Getting your accounting books and records right from the beginning is crucial to avoid spending considerable time to correct the data at the financial year-end. You would save money on accountancy fee by keeping your record properly. Your accountants would be able to extract the data from your record to prepare your company accounts swiftly.

Messy accounting records would cost you more in accountancy fee if your accountant has to sort it out for you.

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