What is a simplified invoice and when can it be issued instead of a full VAT invoice?
A simplified invoice is a VAT invoice with fewer mandatory data elements than a full VAT invoice, permitted for lower-value transactions or in specific circumstances. Under the EU VAT Directive, member states may allow simplified invoices for supplies not exceeding EUR 100 (or national equivalent), or where commercial practice or administrative conditions make it difficult to include all the required full invoice data.
What must a simplified VAT invoice contain?
A simplified VAT invoice must contain (EU minimum): (1) Date of issue; (2) Identification of the supplier (name and VAT number); (3) Description of the goods or services supplied; (4) VAT amount chargeable, or information to calculate it (e.g., gross amount and VAT rate applicable); (5) If applicable: a reference to the original invoice (for credit notes or debit notes). A simplified invoice does not need to include the buyer's name and address, VAT number, quantity, unit price, or the split of net amount and VAT amount. Member states may require additional fields.
Frequently Asked Questions
- Can a till receipt or cash register receipt be a simplified VAT invoice?
- Yes. In most EU jurisdictions and in the UK, a till receipt that contains the mandatory simplified invoice fields (supplier name and VAT number, date, description, gross amount including VAT, VAT rate) constitutes a valid simplified VAT invoice. Retailers use till receipts as simplified invoices for B2C transactions. The buyer can use the receipt to evidence input VAT recovery for business purchases, subject to any limits on recovery from simplified invoices set by national law.
- Can a simplified invoice be used for intra-community supplies?
- No. Simplified invoices cannot be used for intra-community supplies of goods or for distance sales. Full VAT invoices are required for all zero-rated intra-community supplies because the buyer's VAT number must appear on the invoice to substantiate the zero-rating. Member states may also require full VAT invoices for reverse charge supplies.