How to Display a VAT Number

VAT is the European equivalent of sales tax.

Value added tax (VAT) is the European equivalent of sales tax in the United States. A percentage of the purchase price of taxable goods and services is added to the purchase price. The tax is then forwarded to the government. A VAT number is required to collect these taxes and is available from Her Majesty's Revenue and Customs (HMRC). Once you have the VAT number, you are required to display it under certain circumstances, such as on a receipt.

Instructions

1. Type the VAT number on any VAT invoice that you issue. A VAT invoice shows to whom the service or goods were supplied. By law, if a taxable entity makes a taxable supply to another taxable entity, it must issue a VAT invoice along with the supply. If you do not include the VAT number on the invoice, HMRC may not allow you to recover VAT paid or to claim exemption from VAT on certain items.

2. Include the number on any VAT receipt. A VAT receipt is issued when payment is made for taxable good or services and should display the name, address and VAT number of the retailer along with a description of the goods, total amount paid (including VAT), and the tax rate.

3. Place your VAT number on your website and stationary. Although not required by law, you should make this your general practice so that suppliers and other business partners can easily obtain your VAT number should they need it (for example, to issue a duplicate receipt).

Tips & Warnings

• HMRC has several helplines to assist consumers and businesses. If you have any questions about displaying VAT numbers, contact the applicable help line.

References

• Taxation Web: What is a Valid Invoice
• HMRC: VAT Basics
• Stationary Direct: What to Display

Resources

• HMRC: Contacts