Running a business:
VAT records

Once you become registered for VAT you must:

raise a VAT invoice whenever you make a standard rated or reduced rated supply to a VAT registered customer;
keep copies of all VAT invoices that you send;
keep copies of all VAT invoices that you receive (you should only reclaim VAT where you have a valid VAT invoice);
keep records of all the VAT you have charged and paid;
keep a summary of VAT for each tax period covered by your VAT returns; and
keep a VAT account

VAT invoices have to include certain information.

Full VAT invoices must show:

an identifying number
your name, address and VAT registration number
the time of supply (tax point)
date of issue (if different to the time of supply)
your customer's name (or trading name) and address
a description which identifies the goods or services supplied (see below) and
the unit price (see below).

For each description, you must show the:

quantity of goods or extent of the services
charge made, excluding VAT
rate of VAT
total charge made, excluding VAT
rate of any cash discount offered and
total amount of VAT charged, shown in sterling.

The requirement to include unit price on an invoice applies to countable goods or services. For services the countable element might be, for example,

an hourly rate; or
a price for standard services.

If the supply cannot be broken down into countable elements, then the total tax exclusive price will be the unit price. Additionally, the �unit price� may not need to be shown at all if it

is not normally provided in a particular business sector; and
is not required by the customer.

Less detailed VAT invoices can be issued if the charge you make for the individual supply is �250 or less (including VAT). These should show:

your name, address and VAT registration number
the time of supply (tax point)
a description which identifies the goods or services supplied and
for each VAT rate applicable, the total amount payable, including VAT and the VAT rate charged.

Exempt supplies must not be included in this type of VAT invoice.

If you accept credit cards, such as Visa/Mastercard or Barclaycard, you may adapt the sales voucher you give to the cardholder at the time of the sale to serve as a less detailed VAT invoice.