188ÌåÓý

For reasons of confidentiality, many solicitors invoice their clients with a two-part document. It may take different forms, but usually consists of:

• a bill section in the upper part showing separate charges for the supply of the solicitor’s professional services and for his expenses. (These are usually described as “disbursementsâ€� but not all of them will be disbursements for VAT purposes as defined in VAT guide (VAT Notice 700) - 188ÌåÓý, section 25); and
• a tear-off VAT invoice in the lower part for the customer to retain as evidence for input tax deduction.

In principle there is no objection to this practice provided that:

• the bill section cannot be mistaken for a VAT invoice; and
• the VAT invoice section contains all the details required on a full VAT invoice.

It is important that the bill section should not contain the details required on a VAT invoice, in particular it must not show the supplier’s VAT registration number. Preferably it should include a legend such as “THIS IS NOT A VAT INVOICE�.

If VAT is shown as a separate amount, the rate should not be specified and a clear reference to the accompanying VAT invoice should be made. On the VAT invoice section, the description of the supply should be sufficient to identify it as a solicitor’s professional services.