Changes to VAT invoicing

Relevant to
Businesses selling to business customers in other Member States and/or those who use Margin Schemes or Tour Operators' Scheme in the UK

Takes effect on
1 October 2007

From 1 October 2007, various changes will apply to VAT invoicing requirements.

You must use sequential numbering to identify the invoices you issue. You can use both numbers and letters for invoice numbers, and use more than one sequence of numbers, but each must form part of a unique and consecutive series. If you cancel an invoice, you must keep a copy of it to show that you have not broken the numbering sequence.

If you supply goods that are exempt, zero-rated or meet reverse charge criteria in the UK to businesses in other Member States where a VAT invoice is mandatory for such goods, you will have to indicate on the invoices the reason for the exemption, or the requirement of the customer to pay the VAT.

You will be able to choose how to indicate on your invoices any treatment under the Margin Scheme for second hand goods - e.g. works of art, antiques and collectors' items. You will no longer have to use the mandatory margin scheme wording prescribed in HM Revenue & Customs' (HMRC's) Notice 718.

If you invoice other taxable persons for supplies that you have accounted for under the Tour Operators Margin Scheme, you must show this on the invoices.



For more information visit: www.businesslink.gov.uk