What must be on an invoice with VAT: a checklist

Most tradespeople write invoices in the evening after work, from scraps of paper and memory. That is when the client's VAT number gets left out, invoice numbers get mixed up, or an amount goes in without VAT where it needs VAT. The work itself was done well, but the invoice comes back and the money arrives a week or two later.

The good news is that the rules are not complicated. Check them once, set them in your invoice template, and every invoice after that is right.

What every invoice needs

A VAT payer's invoice has to show what lets the client and the State Revenue Service see who sold what to whom and for how much. In short:

• The date and a unique invoice number that follows on from your last one.
• Your and the client's name, address and VAT number, if the client is a VAT payer.
• A description of the work and materials with quantity, price before VAT, the VAT rate, the VAT amount and the total.

If the work was finished on a different date from the invoice, add the date the work was done. If you are not a VAT payer, invoice without VAT and without a VAT number.

An invoice that comes back costs more than the two minutes it takes to check it.

Building work and reverse charge VAT

On some building work, when both you and the client are VAT payers, the client pays the VAT to the state, not you. The invoice then shows no VAT amount and says "nodokļa apgrieztā maksāšana" (reverse charge). Check with your accountant whether this applies to your work. Before you send, do three things:

1. 1Check the client's name and VAT number.
2. 2Compare the lines with what was actually done on site.
3. 3Make sure the number follows on from the last invoice.

Kvedo does these things for you: the number follows on, 21% VAT is calculated, the client's details come from your client list and the lines come from the job. All that is left is to check and send.