If you buy something for your business, you will need an invoice to claim back from HM Revenue & Customs (HMRC) any VAT you've paid. A VAT invoice gives the VAT details for goods that are sold and services that are provided. However, you only need to issue a VAT invoice when selling to another VAT-registered business. If you want set off than you have to compulsarily have to issue VAT bill. FOR MORE DETAILS REFER :http://www.finmart.com/sr-vat-re...