VAT Invoice Requirements & How to Read One

Why invoice contents are regulated

A VAT invoice is not just a request for payment. It is the document that lets a buyer recover input VAT and lets the tax authority follow the chain of credits and collections. If a key piece of information is missing, the buyer's recovery can be challenged on a routine audit, even if everyone agrees the underlying transaction is genuine. That is why most VAT regimes are prescriptive about what an invoice must show.

This page focuses on the EU framework — Articles 226 and 226a–226b of the VAT Directive — because most national rules either follow it directly or look very similar. National variations are flagged where relevant.

The full VAT invoice checklist

For a standard B2B sale within most VAT regimes, an invoice should show:

The word "Invoice" (or local equivalent) — making clear what the document is.
A unique sequential number. Numbering must be sequential and unbroken; gaps will be questioned on audit.
The date of issue. Not the same as the date the goods or services were supplied.
The date of supply (tax point) if different from the date of issue.
Supplier identification: full name, address, and VAT identification number.
Customer identification: full name, address, and VAT identification number where the customer is a VAT-registered business or where reverse charge applies.
A description of the goods or services. "Consulting services" alone is usually too vague; the description should let an auditor recognise the supply.
Quantity of goods or extent of services.
Unit price exclusive of VAT, with any discounts or rebates not already netted into the unit price.
VAT rate(s) applied. If multiple rates apply, each must be shown separately.
VAT amount payable in the currency of the VAT due (often the supplier's local currency, even when the invoice itself is denominated in another currency).
The taxable amount per VAT rate.
The total amount due, inclusive of VAT.
Reference to any special VAT scheme if relevant — for example "margin scheme — second-hand goods", "cash accounting scheme", or "reverse charge — VAT to be accounted for by the recipient".
Any reference required for cross-border supplies — the buyer's VAT number for an intra-EU supply of goods, or a note that the supply is exempt or zero-rated under a specific provision.

How to read a VAT invoice

Reading an invoice you have received is the mirror image of issuing one. Work through it in this order and you will catch almost every problem before it reaches your return.

Start at the totals block. A compliant invoice shows three figures: the net (tax-exclusive) amount, the VAT amount, and the gross (tax-inclusive) total. If only one figure appears, you are looking at either a gross-only simplified invoice or a document that is not a VAT invoice at all.
Check the rate against the net. Divide the VAT amount by the net amount. The result should match a real rate in the supplier's country — 19% in Germany, 20% in the UK, 21% in the Netherlands. A number that matches nothing usually means mixed rates across the lines, or an error.
Read the line items for rate splits. Where an invoice mixes standard and reduced-rated goods, each line carries its own rate and each rate needs its own subtotal. A single blended percentage across the whole invoice is not compliant.
Find both VAT numbers. The supplier's number should always be there. Your own number appearing on the invoice is the signal that the supplier treated the sale as B2B — which matters a great deal on cross-border supplies.
Look for a zero and a reason. An invoice showing 0% VAT should say why: exempt, zero-rated, an intra-Community supply, or subject to the reverse charge. Zero with no explanation is the single most common defect.
Note the two dates. The issue date and the supply (tax point) date can differ, and it is the tax point — not the issue date — that decides which VAT period the invoice belongs in.
Confirm the currency and any conversion. If the invoice is in a foreign currency, the VAT amount usually also has to be stated in the supplier's national currency, at the exchange rate prescribed by their tax authority.

If the invoice says "reverse charge"

An invoice with no VAT and a reverse-charge note is not a mistake and not tax-free. You self-assess: apply your own country's rate to the net amount, declare that as output VAT, and recover the same amount as input VAT to the extent the purchase supports taxable activity. The full procedure is in our guide to the reverse charge mechanism, and current rates by country are in the VAT rates table.

What a VAT invoice is not

A pro-forma invoice, an order confirmation, a delivery note, a statement of account and a card receipt are none of them VAT invoices, however much detail they carry. Input VAT is recovered on the strength of a valid VAT invoice, so if a supplier has sent one of these instead, ask for the real document before you post the entry.

Simplified invoices

Most VAT regimes allow a simplified invoice for low-value supplies or for certain B2C transactions. Thresholds and rules differ by country, but the simplified invoice typically requires only:

Date of issue.
Supplier identification (name, address, and VAT number).
A description of the goods or services.
The total VAT-inclusive amount or the rate and the VAT due.
A reference to any special scheme that applies.

A till receipt for a small over-the-counter purchase is the most common example. Simplified invoices are not enough for the buyer to recover input VAT in some countries; for B2B purchases of any size, a full invoice is safer.

Cross-border invoice specifics

Intra-EU supplies of goods to a VAT-registered business

The buyer's VAT number must appear on the invoice.
The supply is zero-rated and the invoice should state that it is an intra-Community supply.
Some member states require a reference to Article 138 of the VAT Directive or to the equivalent national provision.

B2B services across borders

The supplier does not charge local VAT.
The invoice should reference the reverse charge ("Reverse charge — VAT to be accounted for by the recipient" or a reference to Article 196).

Imports under IOSS

The IOSS number is provided to the carrier on the customs declaration, not necessarily printed on the invoice itself, but the invoice must clearly show the destination country's VAT charged at the point of sale. See VAT on digital services and cross-border e-commerce for details.

E-invoicing

Electronic invoices have the same legal status as paper invoices in almost every VAT regime, provided their authenticity, integrity, and legibility are preserved through reliable controls. A growing number of countries now go further and require structured e-invoices through national platforms — Italy's SDI, France's PPF/PDP, Spain's Verifactu, and Poland's KSeF are notable examples — sometimes with real-time or near-real-time clearance.

The implications are practical:

The same content rules apply, but in machine-readable form.
Errors are caught earlier and harder to correct after the fact.
The invoice is often not legally issued until it has cleared the platform.

If you are issuing or receiving invoices in a country with a mandatory e-invoicing regime, build the platform integration in before launch. Retrofitting is consistently more expensive than getting it right up front.

Worked example — a compliant EU B2B invoice

An Irish design studio invoicing a French agency for a 5,000 EUR project might issue an invoice that includes:

Header: Invoice.
Number: 2026-0173.
Date of issue: 14 February 2026.
Date of supply: 31 January 2026 (project completion).
Supplier: Studio name, Dublin address, IE VAT number.
Customer: Agency name, Paris address, FR VAT number.
Description: "Brand identity work for [project], January 2026 — see attached SOW."
Quantity: 1.
Unit price: EUR 5,000.
VAT rate: 0% (reverse charge).
Note: "Reverse charge — VAT to be accounted for by the recipient (Article 196 VAT Directive)."
Total: EUR 5,000.

This is enough for the French agency to declare and recover the reverse-charged VAT on its next return without a follow-up.

Common mistakes that block input recovery

Missing or wrong VAT number. Either party's number being absent or invalid will be flagged on automated checks.
Generic descriptions. "Services rendered" or "goods" without further detail is the single most common reason input VAT is challenged.
Wrong tax point. Issuing an invoice dated long after the actual supply complicates the buyer's reporting. Most regimes set a deadline (typically by the 15th of the month following the supply for intra-EU supplies).
Mixing rates without separate lines. A single line that combines goods at the standard rate and goods at a reduced rate cannot be properly reconciled by the buyer.
Missing scheme references. Margin scheme, cash accounting, and reverse charge must each be flagged on the invoice. A buyer cannot guess which one applied.
Currency confusion. If the invoice is in a foreign currency, the VAT amount must be expressed in the supplier's local currency, using an acceptable exchange rate (often the central bank rate on the date of supply).
No copy retained. Most countries require both parties to keep invoices for several years (commonly 6–10). A pristine PDF is fine; missing the file altogether is not.

What Must Appear on a VAT Invoice