An invoice from a non-VAT-registered business is a standard accounting document issued by businesses that are not registered for Value Added Tax. Unlike a VAT invoice, it does not include a VAT rate or VAT amount – only the total amount due. If you run a business and are not VAT-registered, this is the most common type of invoice you will issue. On MyInvoiceOnline.co.uk you can create one in seconds.
What must the invoice include?
An invoice from a non-VAT-registered business has a simpler structure than a VAT invoice – there is no VAT rate or VAT amount to show. Even so, it must contain certain details to be valid as a financial document.
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Important!
As a non-VAT-registered business, you must never use the term "VAT Invoice" or "Tax Invoice", and you must not show a VAT rate or VAT amount on your invoice. Doing so is misleading – and HMRC could require you to pay the VAT you have shown on the document, even though you are not VAT-registered.
When and why is this invoice used?
You issue a non-VAT invoice for essentially every sale of goods or services if you are not registered for VAT:
Standard invoicing for goods or services – You've completed a job, shipped goods or finished a project? The invoice is your formal request for payment and an accounting record for both parties.
Tax records and Self Assessment – The invoice is the basic document you use to record your income. Without it, you have no evidence of what you were paid for.
Record for your customer – Even though the customer cannot reclaim any VAT from your invoice (because there is no VAT on it), they still need it as proof of their expenditure.
Recurring invoicing – For regular work (monthly retainers, subscriptions, maintenance contracts) you issue an invoice for each period.
If your taxable turnover exceeds £90,000 over any 12-month rolling period, you are required to register for VAT with HMRC. From that point on, you must issue VAT invoices showing a full VAT breakdown – not a non-VAT invoice. Keep a close eye on your turnover so that compulsory registration doesn't catch you off guard.
Best practice tips:
Never use the term "VAT Invoice" or "Tax Invoice" – those are for VAT-registered businesses only.
Keep a consistent look and a sequential numbering system across all your invoices.
Always include complete billing details for both parties.
Add your bank details clearly to make payment as easy as possible.
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