UK VAT Invoice Requirements for Shopify Stores (2026)

If your Shopify store is VAT registered, the invoices you send are legal documents. HMRC sets out exactly what they must contain, when they must be issued and how long you must keep them, and a missing VAT number or an invoice number that restarts every year is enough for a business customer to be refused their VAT reclaim.

This guide explains what HMRC expects from a UK VAT invoice in 2026, where Shopify’s own documents fall short, what changes when mandatory e-invoicing arrives in April 2029, and a 10-point checklist you can run on your store today. It is written for UK-based Shopify merchants; if you sell to EU business customers, the reverse charge rules add a few more details, which we cover in the reverse charge and customer VAT number guide.

Who needs to issue VAT invoices

You need VAT invoices once your business is registered for VAT. Registration is compulsory when your taxable turnover goes over £90,000 in any rolling 12 months, and many merchants register voluntarily below that so they can reclaim VAT on stock and software.

B2B sales to VAT-registered customers: you must issue a VAT invoice. Your customer needs it to reclaim the VAT they paid you.
B2C (retail) sales: you only have to provide a VAT invoice if the customer asks for one. In practice most Shopify merchants send one on every order, because customers expect it and it saves support time.
Zero-rated and exempt sales: a VAT invoice is not legally required, but if you issue one, show these lines separately with no VAT charged.

The 14 details a full VAT invoice must show

HMRC’s rules (regulation 14 of the VAT Regulations 1995) require the following on a full VAT invoice. The right-hand column shows what to check in Shopify.

#	Required detail	Shopify note
1	Unique sequential invoice number	Your Shopify order number is not an invoice number. Use a separate series that never restarts or reuses a number.
2	Time of supply (tax point)	Usually the payment or dispatch date.
3	Date of issue	Can differ from the tax point.
4	Your business name and address	Your legal name, not only the store name.
5	Your VAT registration number	GB followed by 9 digits.
6	Customer name and address	Billing details from the order.
7	Description of the goods or services	Product title plus variant.
8	Quantity of goods or extent of services	Per line.
9	Unit price	Excluding VAT.
10	VAT rate per line	20%, 5% or 0%.
11	Amount per line excluding VAT	Shipping should appear as its own line.
12	Total excluding VAT	Across all lines.
13	Any cash discount rate offered	Only if you offer one.
14	Total VAT, shown in sterling	Other amounts can be in any currency.

Two further items apply only in specific cases: a reference to the reverse charge where the customer accounts for the VAT, and a reference to the margin scheme if you sell second-hand goods under it.

Simplified and modified invoices

Simplified invoice (£250 or less including VAT): you can show only your name, address and VAT number, the tax point, a description, the VAT rate, the total payable including VAT, and (if you charge more than one rate) the VAT-inclusive total for each rate. It cannot include exempt supplies.
Modified invoice (over £250, retail): if your customer agrees, you can show VAT-inclusive line values, as long as the invoice also shows the totals excluding VAT, the VAT amount and the total including VAT.

Deadlines and foreign currency

Issue within 30 days of the tax point, or of the payment date if the customer paid in advance. Almost every Shopify order is paid at checkout, so the clock usually starts there.
Selling in euros or dollars: you can price and invoice in any currency, but the total VAT must be shown in sterling, converted at an HMRC-accepted rate: the UK market rate at the time of supply or HMRC’s published period rate.

Shopify Markets and multi-currency

If you sell in local currencies through Shopify Markets, check that your invoice shows the VAT total in pounds as well as in the customer’s currency. An invoice that shows VAT only in euros does not meet the UK rule.

Refunds need a credit note

When you refund all or part of an order, issue a credit note rather than editing or deleting the original invoice. It should show its own number and date, your details and your customer’s, the reason for the credit, the goods or services credited, the amount and VAT credited, and the number and date of the original invoice. Deleting an invoice leaves a gap in your number sequence that you will have to explain if HMRC asks.

How long to keep invoices

Keep VAT records, including every invoice and credit note, for at least 6 years, or 10 years if you use the One Stop Shop (OSS) for EU sales. Under Making Tax Digital, your VAT records must be kept digitally and flow into your VAT return through linked software, so a folder of PDFs alone is not enough. Your invoicing tool should export data your bookkeeping software can import.

What Shopify gives you, and the gaps

Shopify Tax can generate VAT invoices for orders shipping to the UK and EU. They cover the basics, but check the limits before relying on them:

The invoice is shown on the order status page. It is not emailed to the customer automatically.
It is not available for every order: orders where duties were charged, orders shipping to Portugal and orders placed outside Shopify checkout are excluded.
Refunds do not automatically produce a matching credit note.

If you sell B2B, across borders or at volume, you will want invoices and credit notes created and sent automatically. Apps such as InvoiceFlow Pro, which we build at Specifek, issue a numbered PDF invoice on every paid order and a credit note on every refund, with reverse charge and export zero-rating applied from the customer’s country and VAT number. Whatever tool you use, test it against the 14-point table above.

Coming next: mandatory e-invoicing from April 2029

The UK government has confirmed that from April 2029 VAT invoices between businesses (B2B) and to the public sector (B2G) must be issued as structured e-invoices. In June 2026 it confirmed Peppol as the network, using a four-corner model in which businesses send and receive invoices through accredited access points. Invoices to consumers (B2C) are out of scope, and a detailed roadmap is expected with Budget 2026.

For Shopify merchants who mainly sell to consumers, little changes. If a meaningful share of your orders comes from other businesses, plan for an invoicing tool that can send Peppol e-invoices before 2029, and keep your customer VAT numbers clean now. The e-invoicing mandates guide covers the EU timetable and what to prepare.

Your 10-point checklist

Check your VAT registration status against the £90,000 threshold.
Use a separate, sequential invoice number series.
Show your legal business name, address and VAT number on every invoice.
Record both the tax point and the date of issue.
Show unit price, quantity, VAT rate and VAT per line.
Show the total VAT in sterling, even on EUR or USD orders.
Use simplified invoices only for sales of £250 or less.
Issue invoices within 30 days, and a credit note for every refund.
Keep records for 6 years (10 with OSS), digitally, for Making Tax Digital.
Choose invoicing software that will support Peppol e-invoicing by April 2029.

Setting up a new store or moving to Shopify? Our Shopify store setup service configures taxes, invoicing and checkout correctly from day one.

Frequently asked questions

Is a Shopify order confirmation a valid VAT invoice?

Usually not. An order confirmation normally lacks a separate sequential invoice number, the tax point, your VAT registration number and the per-line VAT breakdown HMRC requires. Send a proper VAT invoice alongside it.

Do I have to send a VAT invoice to every customer?

You must issue one to VAT-registered business customers, within 30 days. For retail customers you only have to provide one on request, but sending one on every order is good practice and reduces support emails.

Can I invoice in euros or dollars?

Yes. Prices and totals can be in any currency, but the total VAT must be stated in sterling, converted at the UK market rate at the time of supply or HMRC’s published period rate.

What is the simplified VAT invoice limit?

£250 including VAT. Above that you need a full VAT invoice, or a modified invoice for retail sales if the customer agrees.

How long must I keep VAT invoices?

At least 6 years, or 10 years if you use the EU One Stop Shop. Under Making Tax Digital the records must be kept digitally.

Will mandatory e-invoicing affect my Shopify store?

From April 2029, VAT invoices to business and public sector customers must be sent as Peppol e-invoices. Sales to consumers are not included in the mandate, so B2C-only stores are largely unaffected.

General information, not tax advice

This guide summarises HMRC rules as of September 2026. Check your own situation with your accountant or HMRC before changing how you invoice.

UK VAT Invoice Requirements for Shopify Stores: 2026 Checklist