1. Invoicing Requirements
Standard Invoices
When selling to another VAT-registered business, you must issue an invoice (not a receipt) that clearly shows “INVOICE” and includes:
- A unique, sequential invoice number
- Your company name, address , and contact details
- Customer’s company name and address
- Description of the goods or services supplied
- Date of supply (tax point) and invoice issue date
- Amounts charged , including VAT if applicable, and the total due ( GOV.UK, Stripe)
VAT-Specific Requirements
If VAT applies, the invoice must also include:
- Your VAT registration number
- Net amount before VAT
- VAT rate and amount charged
- Total amount inclusive of VAT
- For reverse charge or self-billing scenarios, state this explicitly ( , Avalara)
Invoice Types
- Full VAT Invoice : Contains all required fields listed above
- Modified Invoice : Used for retail sales over £250; includes an amount inclusive of VAT
- Simplified Invoice : For retail sales under £250; includes fewer fields (e.g., total including VAT) ( FreeAgent, Stripe)
Additional Notes
- Payment due dates are not legally required but are good practice ; without one, payment is expected within 30 days
- Electronic invoices are acceptable if they maintain authenticity, integrity, and legibility
- If issued in a foreign language or currency, you must provide a translation upon HMRC’s request, and VAT must be shown in GBP ( , Wise)
2. Returns & Refund Policies
Faulty Goods (Consumer Rights Act 2015)
Under the Consumer Rights Act 2015, consumers are entitled to:
- A full refund within 30 days for goods that are faulty, not as described, or unfit for purpose
- After 30 days, a repair or replacement must be offered, or a refund if the remedy fails ( Wikipedia, Which?, Research Briefings)
Distance Sales (Consumer Contracts Regulations 2013)
For goods purchased online, by mail, or phone:
- Customers have a 14-day cooling-off period from receipt to notify cancellation
- They then have another 14 days to return the goods
- Refund must be issued within 14 days of receiving returned goods ( GOV.UK)
Return Policy Disclosures
Retailers aren’t legally required to offer returns beyond statutory rights, but if they do:
- The policy must not mislead consumers about their legal entitlements
- Displaying statements like “No refunds” or “Only credit notes” is unlawful ( businesscompanion.info, Sprintlaw UK)
Noteworthy Compliance Issues
A MoneySavingExpert report found that several major UK retailers—such as Home Bargains and The Range—misrepresent consumer return rights by limiting return windows in violation of law. If retailers fail to inform consumers properly, the legal return window can extend up to 12 months . ( The Sun)