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Invoice rules

Stationery is a pretty dry subject, which is probably why not a great deal of publicity has been given to a new European Directive. It came into force on 1 January 2004, and it changes the list of things that have to be shown on a "proper VAT invoice". Several items which used to be compulsory are now optional - the type of supply, the total VAT charged at each rate, and the invoice total in sterling - but if your printed forms still show them, or your computer program puts them in, it doesn't matter.

The catch - of course - is that there is one new compulsory element. You are now supposed to show the "unit price" as well as everything else. If you don't already do this, you may need to print new stationery and reprogram your computers. Fortunately, Customs have promised to use a "light touch" for these rules in the first year, which should give everyone time to adjust before any penalties apply.

In some cases, it's not clear what the "unit" is. Some people charge by the hour, and some people charge by the job. Customs have indicated that they will accept that "one job - £X" will be acceptable, if that is how the price is set. You won't have to invent a calculation based on units and rates.