What type of supplies require a VAT invoice to be raised?

A VAT invoice is specifically required for taxable supplies made to another VAT-registered business. This requirement stems from the need for businesses to reclaim VAT they have incurred on their purchases. When a VAT-registered business provides goods or services to another VAT-registered business, the supplier must provide a VAT invoice that shows the VAT amount charged, enabling the purchaser to reclaim this tax.

The invoice must contain specific details such as the supplier and customer VAT registration numbers, the date of supply, and a description of the goods or services provided. Requiring a VAT invoice for these types of transactions ensures proper documentation and compliance within the VAT system, facilitating accurate reporting and adherence to tax regulations. Additionally, VAT-registered businesses can only reclaim VAT that has been properly invoiced, reinforcing the necessity of the invoice in commercial transactions between VAT-registered entities.

In contrast, the other options either misrepresent the requirements for VAT invoices or do not align with standard VAT regulations. For example, not all supplies require a VAT invoice; it is specifically those involving taxable supplies to VAT-registered businesses that necessitate this documentation. Furthermore, the value of the supply, whether it exceeds £10,000 or not, does not determine the need for a VAT invoice, as the invo