Annual invoicing

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VAT Regulation 90 allows a taxpayer to issue a single invoice for supplies of services for up to one year in advance. HMRC Notice 700, para 14.3 refers to this rule, and is confusingly titled, ‘continuous supplies of goods and services.’ The only goods that can be invoiced in this way are those supplies which are deemed to be goods by Regulation 86, ie: power, heat, refrigeration, and ventilation.

Typically services invoiced in advance are subscriptions, equipment hire (e.g: photocopy machines), commercial rent.

It is important that the annual invoice includes a due date for each payment, showing the following details; net amount due, VAT rate, and VAT amount. The tax point for each interim amount is the earlier of the due date and the date received.

If the rate of VAT changes within the year, the invoice ceases to have effect in respect of all later due dates.

About Les Howard


Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire

I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.


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