A document saying “invoice” is not necessarily a VAT invoice. Equally, a short retail receipt can sometimes contain the necessary VAT information. The useful question is whether the document supports the particular transaction, the VAT charged and the business making the claim.
In this article
- Check supplier and customer details
- Review the invoice date and number
- Check descriptions and VAT figures
- Request corrections before relying on it
Build a checking routine before invoices reach your return. It is easier to ask a supplier for missing information while a purchase is fresh than to reconstruct it months later.
Start with the supplier and the supply
Confirm which legal business supplied the goods or services. A trading name, payment processor name and registered company name may differ. Match the invoice to your order, delivery or completed work, rather than relying on the bank description alone.
Check that the supplier actually charged VAT. A total divided by an assumed VAT rate is not evidence that VAT was charged. You can use HMRC’s UK VAT number checker to check a registration number, but a valid number does not by itself establish that your purchase qualifies for recovery.
For a full VAT invoice, review the document against the following groups of information. HMRC sets out the detailed requirements and exceptions in VAT Notice 700, section 16.
| Area | Details to check |
|---|---|
| Document identity | Unique sequential invoice number, issue date and tax point if different |
| Parties | Supplier name, address and VAT number; customer name and address |
| Purchase | Meaningful description, quantity or extent of services and applicable unit price |
| Calculation | VAT rates, amounts excluding VAT, total VAT in sterling and relevant discount information |
The tax point is the date used to determine when the supply is treated as taking place for VAT. It need not match the day money leaves your bank. Flag a difference for review instead of changing the invoice date to fit the payment.
Short receipts need a different check
A simplified VAT invoice can be available for supplies worth £250 or less including VAT, subject to HMRC’s conditions. It does not require every detail shown on a full invoice. It still needs the supplier’s name, address and VAT number, the tax point, a supply description, and the VAT-inclusive amount and rate for each applicable rate. Northern Ireland sales to EU customers have additional restrictions; see HMRC’s simplified invoice rules.
Do not reject every small receipt because your company name is absent. Conversely, do not accept a card terminal slip just because it shows the total. Ask the supplier for the appropriate VAT document where the available evidence is incomplete.
Separate document quality from recoverability
An apparently correct invoice is only one part of a VAT review. A purchase may involve private use, exempt activities or a category with restricted recovery. The question “is this invoice complete?” differs from “how much input VAT may we claim?” HMRC explains the broader conditions in its guide to reclaiming VAT.
For bookkeeping purposes, record what was bought and why it was needed. If an employee purchased something, retain their expense claim and business explanation with the receipt. When a document covers several items, highlight anything needing separate treatment. A vague description such as “services” is particularly unhelpful when establishing the business purpose.
An illustrative purchase review
Imagine a small design company receives three documents: a properly addressed equipment invoice, a card slip for office supplies, and an invoice addressed to a director for a partly personal purchase. This is an illustrative example, not a client case.
The equipment invoice goes through the normal document and recovery checks. The card slip enters a query list while the supplier is asked for a VAT receipt. The director’s invoice needs review of the purchaser, business use and appropriate recovery treatment. None is approved simply because the bank transactions have reconciled.
The company labels each query with an owner and a target response date. Its next return review therefore starts with a short list of unresolved decisions rather than an inbox of unexplained attachments.
Keep corrections traceable
If the supplier sends a replacement, keep the original and the corrected document together, marking which is used. Avoid manually editing their invoice. If a credit note follows a return or overcharge, connect it to the original purchase so both cannot accidentally support separate claims.
A practical monthly control is to compare the purchase ledger with the document store. Look for duplicate invoice numbers, missing attachments, unexpected VAT codes and invoices belonging to another business. Software capture can help organise documents, but automatically extracted figures still need checking.
Does a bank statement replace a VAT invoice?
It proves that money moved, but generally does not provide the invoice details needed to support an input VAT claim. Ask for the underlying document and review any exceptional evidence with your adviser.
Should we delay the whole return over one missing document?
Do not let one query derail your filing timetable. Identify the unresolved amount, decide its treatment with your adviser and keep the follow-up visible. Avoid estimating recoverable VAT merely to clear the query.
If invoice checking is taking time away from running your business, discuss an agreed document review and return preparation scope through EPOS Accountancy’s VAT service. Bring sample invoices, your current software details and your next return deadline; pricing information is available separately.