What every invoice must show: a checklist for VAT, GST and sales tax

For a business customer, an invoice is the paper their accounts team needs before they can pay you, and often the paper that lets them claim back the tax they paid. If something is missing, it sits in a queue until you send a new one. A complete invoice gets paid faster.

Most of what an invoice must show is the same in every country. Here is that checklist, then the extras for the UK and EU, India and the US. It is a plain summary, not tax advice, so check anything unusual with your accountant.

The checklist that works almost everywhere

• Your details: business name, address, and your tax number if you are registered (VAT number, GSTIN, ABN, TRN and so on).
• Your customer's details: their name and address, and their tax number when they are a registered business.
• A unique invoice number. Each invoice gets its own number, in order, with no repeats. A simple pattern like HP/26-27/0118 is fine.
• Dates: the date you issue it, and the date of the sale or service if different.
• A clear description of what you sold. “Services” is not enough. “Replace kitchen boiler valve” is.
• Quantity and price for each line, so the customer can check the maths.
• Tax rate and tax amount, per line or in total, shown apart from the price.
• The total, with the currency. Write GBP, EUR or USD, not just a symbol, when you bill across borders.
• Payment terms and how to pay: a real due date, your bank details, and a pay link if you have one.

Not registered for tax? Then you usually charge none and leave the tax lines out. Everything else still applies.

VAT, GST and sales tax: one idea, three names

Most countries tax sales. You add the tax to your price, collect it and pay it to the government. The name, rate and layout change.

With VAT (UK, EU, UAE and many others) and GST (India, Australia, Singapore and others), a registered business customer can usually claim back the tax you charged them. That is why the details must be exactly right: a wrong tax number can stop their claim, and they may hold your payment until it is fixed. With US sales tax, the tax is usually collected once, from the final buyer.

In the UK and EU

A VAT invoice in the UK needs your VAT registration number, the customer's name and address, a unique number, the date of issue, the date of supply if it is different, and for each line the price without VAT, the quantity and the VAT rate. Then the total without VAT and the total VAT. For small retail sales, up to £250 including VAT, a shorter simplified invoice is allowed. Check HMRC's guidance for the details of your case.

EU countries share the same VAT rules, so the list is similar, with a few local extras. Two things to know:

• Reverse charge: when you sell to a VAT-registered business in another EU country, you usually charge no VAT. The invoice shows both VAT numbers and a note that the reverse charge applies, and your customer accounts for the VAT in their own country.
• E-invoicing: several EU countries now require, or are phasing in, electronic invoices between businesses. Ask your accountant whether and when it applies to you.

In India

A GST-registered business issues a tax invoice. On top of the checklist above, it needs:

• GSTIN for you, and for your buyer if they are registered. One wrong character and they cannot claim the GST back.
• HSN or SAC code on each line: HSN for goods, SAC for services. How many digits you show depends on your turnover.
• The right tax split. If the place of supply is in your own state, charge CGST and SGST, half each: 18% becomes 9% plus 9%. If it is in another state, charge one IGST at the full rate. The buyer pays the same total either way.
• Place of supply, with the state, for sales to another state. For goods it is usually where they are delivered, for most services to a registered business, where the buyer is. Some services have special rules.
• A number unique in the financial year (April to March), up to 16 characters, and whether reverse charge applies, yes or no.

A composition dealer, a business on the fixed low-rate scheme, cannot collect GST. It issues a Bill of Supply with no tax on it instead. Larger businesses above a turnover limit must also create an e-invoice (IRN) on the government portal. That limit has been lowered more than once, so ask your CA whether it applies to you.

In the US

There is no national sales tax and no national law on what an invoice must look like. Sales tax is set by states, and often by cities and counties too, so the rate depends on where the sale happens. A few states have no statewide sales tax, and many states do not tax many services. Whether you must collect it at all depends on where you have a presence or enough sales.

The checklist still pays off: clear invoices get approved and paid. When you charge sales tax, show it on its own line with the rate. If a business customer is exempt or buying to resell, keep their certificate on file. For your state's rules, ask your accountant.

Australia, Singapore and the UAE

In these three, a registered business usually issues a document titled “Tax invoice” for taxable sales. In Australia it shows your ABN, and for bigger sales the buyer's details too. In Singapore it shows your GST registration number. In the UAE it shows your TRN (VAT number), and the buyer's TRN if they are registered. Each has its own list and limits, so check locally before relying on a template.

Mistakes that hold up payment

• A wrong or missing tax number, yours or the customer's.
• Numbers that repeat or skip. Every invoice needs its own number.
• A vague description, or no currency on a bill abroad.
• Tax charged when you are not registered, or at the wrong rate.
• Editing an invoice after you issued it. Raise a credit note instead, so both sides' records still agree.

A correct invoice is one of the easiest ways to get paid faster. If you bill clients in other countries, see billing clients abroad for currency and zero-rated sales. And if you still number invoices by hand, read when to switch from Excel invoices.

The short version

• Everywhere: your details and tax number, the customer's details, a unique number, dates, a clear description, quantity and price.
• Show the tax rate and amount apart from the price, the total with its currency, a due date and how to pay.
• UK and EU: VAT numbers, VAT per rate, and a reverse charge note on EU business sales across borders.
• India: GSTIN, HSN or SAC, CGST and SGST or IGST by place of supply, and a Bill of Supply for composition dealers.
• US: sales tax depends on the state and city. Show it on its own line.
• Rules change. When in doubt, ask your accountant or CA.