← Glossary Business glossary

What is Invoice?

A request for payment that says who owes what, for what, and by when.

A UK invoice needs the word "Invoice", a unique sequential number, your details and the customer’s, the date, a description of what you are charging for, the amounts and total, and how and when to pay.

If you are VAT-registered you also show your VAT number, the rate and the VAT amount. If you are not registered, you do not mention VAT at all.

Sequential numbering with no gaps and no duplicates matters more than it sounds. It is what makes your records auditable, and a gap is the sort of thing that invites a question you would rather not answer.

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