InvoicingTaxesInternational

What is a VAT Invoice and Do You Need to Issue One?

Published on November 9, 2025

In the US, Sales Tax is simple. In the UK and Europe, VAT (Value Added Tax) is complex and strictly regulated. A "VAT Invoice" requires specific information beyond a standard invoice.

Required Fields for VAT Invoices

  • Your VAT Number: Must be clearly visible.
  • The Tax Date: The date the service occurred (tax point).
  • VAT Rate Per Item: You must list which items are 20%, 5%, or 0% VAT.
  • Total VAT Amount: The total amount of tax being charged, separate from the subtotal.

Our Invoice Generator includes a specific "Tax/VAT" column toggle to handle these calculations automatically.

SmoothLedger provides free invoicing tools for professionals worldwide. Whether you are a freelancer in the UK, a contractor in the US, or a designer in Canada, our Invoice Generator templates are fully customizable to your currency and tax laws.