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United Kingdom Tax and Invoice Requirements

The Square Invoices product will allow you to send an invoice – as well as a payment receipt upon completion – to your customer.

Customer VAT Information

If needed, you can add your customer’s additional information, such as their VAT number, company name and address to their customer profile via your online Square Dashboard, Square POS app or Square Invoices app. Once added, the information will display on any new invoices sent to that customer.

The invoice PDF your customer can download includes:

  • Customer VAT number.

  • At line item level, the unit price excluding VAT, discount, VAT rate (if applicable based on your determination) and total invoice amount.

  • A VAT table at the bottom that summarises the invoice by VAT rate and features the total amount excluding VAT, total VAT amount (if applicable based on your determination) and total amount including VAT.

VAT Rates

The VAT rate depends on the type of goods or service sold, the country sold to and whether the buyer is a business or private individual.

Here’s some additional information from www.gov.uk on VAT rates for different types of goods and services.

Business to Business versus Business to Consumer

VAT requirements are different for sales to businesses than for sales to private individuals. When selling to private individuals, there may be additional VAT obligations.

If you are unsure, please consult with a tax professional.

This webpage provides further information on VAT for businesses.

Digital Products

If you’re selling digital products to private individuals, VAT may be required. In that case, the applicable VAT rate depends upon the customer’s location.

Learn more about Electronically Supplied Services.


Disclaimer

The links above are not maintained or updated by Square. This guidance is not intended as professional advice and if you are not sure about these details, please consult with a tax professional. The UK has left the EU and some tax legislation could change.

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