Minor update to HMRC’s VAT invoice guidance

HMRC has made a minor update to its guidance on less detailed VAT invoices, which may be particularly relevant to charities that operate retail shops. The change clarifies how businesses, including charity shops, can issue simplified invoices for lower-value transactions.

Less detailed VAT invoices, also known as simplified VAT invoices, are permitted for transactions under £250 (including VAT). These invoices require fewer details than full VAT invoices, making them more practical for high-volume, low-value sales – common in charity retail. The recent update provides further clarification on what must be included in these invoices to ensure compliance.

Charities with shops should review the updated guidance to confirm that their invoicing practices remain compliant with VAT regulations. Ensuring proper documentation helps avoid administrative issues and ensures that VAT records are correctly maintained. The Charity Tax Group has highlighted that while the update is minor, it serves as a useful reminder for charities to check their VAT processes.

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