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HMRC internal manual

VAT Traders’ Records Manual

HM Revenue & Customs
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Other Invoicing arrangements for particular businesses: Cash and carry wholesalers: Total of goods and VAT

Invoices must show separate totals for:

  • the value of supplies in each VAT rate category; and
  • the total VAT charged.

It must be clear what the totals refer to, although abbreviations may be accepted. For example, “GDS Z” could be used to mean goods in the zero-rated category.

There is no objection to totals being posted to a summary invoice, provided that the two documents are clearly cross-referenced with the invoice number and date. A summary is regarded as part of the VAT invoice to be issued to the customer and the supplier must keep a copy.

Some traders may wish to use cash registers that have a limited capacity for sub-totalling. As a minimum requirement, the total VAT and the VAT inclusive totals of the invoice must be shown so that the missing details can be determined.

For example, multiplying the total VAT amount by 47 and dividing by 7 will give the VAT-inclusive value of goods chargeable at 20%, and that figure deducted from the VAT inclusive total will give the value of the zero-rated goods.

For this arrangement to be acceptable, separate invoices would have to be issued for supplies subject to different positive VAT rates.