UK VAT Compliance
HMRC-compliant VAT handling, built in.
UK VAT compliance is not optional — and getting it wrong is expensive. Invoify comes pre-configured with all four UK VAT rates (Standard 20%, Reduced 5%, Zero-rated 0%, and Exempt 0%), enforces the required invoice fields under the VAT Act 1994, and correctly handles VAT number display, supply dates, and tax breakdowns. Create custom tax rates for special situations, and assign different rates to different line items for mixed-rate invoices.
Why your business needs this
Pre-configured VAT rates
Standard (20%), Reduced (5%), Zero-rated (0%), and Exempt (0%) are ready to use from day one. No manual setup needed.
HMRC field compliance
Invoices automatically include all fields required by HMRC: VAT number, supply date, tax breakdown, and sequential numbering.
Mixed-rate invoices
Assign different VAT rates to different line items on the same invoice. The tax summary breaks down VAT by rate automatically.
Custom tax rates
Need a special rate? Create custom tax entries with name, code, percentage, and category. Assign them to products and invoices.
Step by step
VAT rates are pre-loaded
When you sign up, the four standard UK VAT rates are already configured and active. They are system-provided and cannot be accidentally modified.
Assign taxes to products
Set a default VAT rate on each product in your catalog. When you add the product to an invoice, the correct tax rate applies automatically.
Per-item tax on invoices
Override the default tax rate on any line item if needed. The invoice totals and tax summary recalculate instantly.
Compliant output
The generated invoice and PDF include all HMRC-required fields: your VAT number, supply date, tax breakdown by rate, and sequential invoice number.
Everything included
Four UK VAT rates
Standard 20%, Reduced 5%, Zero-rated 0%, and Exempt 0% — pre-configured and read-only.
Custom tax rates
Create additional rates for VAT, Sales Tax, GST, Withholding, Excise, Customs, or Other categories.
Per-item assignment
Different line items on the same invoice can have different tax rates.
Tax summary breakdown
Invoices show a clear breakdown of tax by rate — essential for mixed-rate invoices.
VAT number validation
The system prompts you to add a VAT number when creating VAT invoices.
Supply date support
The supply date (tax point) is a dedicated field on every invoice, as required by HMRC.
Default tax setting
Mark one tax rate as the default for new products — saves time on catalog setup.
Activate/deactivate
Toggle tax rates without deleting them. Historical invoices keep their original tax references.
Eliminate VAT errors
VAT errors on invoices can lead to HMRC penalties and client disputes. Pre-configured rates and mandatory field validation ensure every invoice is compliant from creation — no VAT expertise required.
Configuration Tips
- 1Set the correct VAT rate as the default in Tax Settings — it will pre-fill for all new products.
- 2Add your VAT registration number in Settings > Billing Information to activate full VAT invoice formatting.
- 3For zero-rated goods (food, children's clothes), select the Zero-rated tax explicitly — do not leave the tax field empty.
- 4Review the tax summary on your invoices before issuing — mixed-rate invoices should show a clear breakdown by rate.