A VAT invoice is an accounting document issued by a business that outlines the details of the products or services sold that are subject to a value-added tax
. It is a specific type of invoice that includes sales tax on it
. VAT stands for value-added tax, which is a consumption tax used across the European Union and in other countries that’s applied to services and other taxable supplies
. A VAT invoice must be issued within 15 days of the end of the month in which goods or services are supplied
. It is the basis for establishing a business's VAT liability on the supply of goods or services and enables VAT registered customers to reclaim the VAT charged to them
. Only businesses that are registered for VAT should issue VAT invoices, and it’s only compulsory to do so if the customer is also registered for VAT
. A VAT invoice should include a unique sequential number identifying the invoice, the supplier’s full name and address, the customer’s full name and address, the description of quantity and type of goods supplied or type and extent of services rendered, the date of transaction or payment, the VAT rate applied, the VAT amount payable, and the breakdown of VAT amount payable by VAT rate or exemption
