VAT and sales tax on invoices: UK VAT and Texas sales tax examples
For bookkeepers, accounts assistants, billing and office staff who raise sales invoices. Prerequisite: 'Sales tax and VAT basics', which teaches tax-exclusive and tax-inclusive arithmetic and output and input tax. This course applies those basics to the invoice itself in two example jurisdictions: the UK (VAT, HMRC's VAT Notice 700) and the US state of Texas (state and local sales tax, Texas Comptroller guidance). Other US states and other countries have different rules. Rates, thresholds and rules are as published when this course was written; check the current guidance. This course is not tax advice and doesn't qualify you to give it; your finance lead or tax adviser decides anything outside routine invoicing.
- Level
- Intermediate
- Length
- About 98 minutes
- Contents
- 5 lessons · final exam
- Status
- Published · updated 10 Oct 2026
Skills you'll practise
- Identify the details a UK VAT invoice must show, and when a simplified invoice or a pro-forma is used instead
- Determine the tax point for a UK supply and the time limit for issuing the VAT invoice
- Calculate VAT on an invoice line by line, applying HMRC's rounding rules and working back from VAT-inclusive prices
- Check a Texas sales tax invoice for separately stated tax, correct rate and rounding, taxable delivery and a resale certificate on file
- Decide when an invoicing tax question must go to your finance lead or tax adviser
Course outline
- 1.Identifying the details a UK VAT invoice must showLesson · 20 min
- 2.Determining the tax point for a UK supply and the time limit for the VAT invoiceLesson · 18 min
- 3.Calculating VAT on an invoice line by line, with HMRC's rounding rulesLesson · 18 min
- 4.Checking a Texas sales tax invoiceLesson · 20 min
- 5.Deciding when an invoicing tax question must go to your finance lead or tax adviserLesson · 10 min
- 6.VAT and sales tax on invoices: UK VAT and Texas sales tax examples: knowledge checkKnowledge check · 14 questions
- 7.VAT and sales tax on invoices: UK VAT and Texas sales tax examples: practical exerciseKnowledge check · 1 question
- 8.Final exam10 questions · passing it completes the course, so people who already know the material can test out
Sources it draws on
The lessons and questions are written from these references, so learners can go back to the original.
- HMRC: The VAT guide (VAT Notice 700), sections 14 (time of supply), 16 (VAT invoices) and 17 (invoices in particular situations, rounding), last updated 25 June 2026 (UK)
- GOV.UK: Charge, reclaim and record VAT (how to charge VAT, rates, calculating VAT-inclusive and VAT-exclusive prices) (UK)
- GOV.UK: VAT rates (UK)
- GOV.UK: Register for VAT (registration threshold) (UK)
- Texas Comptroller of Public Accounts: Sales and Use Tax (rates, filing) (US, Texas)
- Texas Comptroller: Sales and Use Tax FAQs, Sales Tax Collection (separately stated tax, rounding, delivery charges) (US, Texas)
- Texas Comptroller: Sales and Use Tax FAQs, Resale Certificates (US, Texas)
- Texas Comptroller: Sales and Use Tax FAQs, Keeping Records (US, Texas)
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