Market trader invoice template

How do market traders usually invoice?

Market traders record daily takings by cash and card rather than invoicing, and raise invoices only for wholesale orders to shops, event organisers who book them for private markets, and corporate gift orders, on 14 day terms with the product list and quantities. A receipt is given to customers who ask. Where a trader sells both zero rated food and standard rated goods, the till or takings record must split them once VAT registered.

Market traders in this example are paid on receipt. A full day is typically £150 to £600.

What should a market trader put on an invoice?

Beyond the legal basics, market traders should:

• Keep a daily takings record per market with cash and card totals; it is your sales record.
• Invoice wholesale and corporate orders with product, quantity and unit price.
• If registered, split zero rated and standard rated sales in your takings record.
• Include your trading name and address on receipts; customers need them for returns.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do market traders charge VAT?

Market sales are retail: you record daily takings rather than issuing invoices, and VAT depends on what you sell once registered above £90,000 turnover. Most food is zero rated, while hot food, confectionery, clothing for adults, crafts and household goods are standard rated at 20%, and children's clothing is zero rated. Below the threshold you charge no VAT. Pitch fees paid to the market operator are a cost.

On the Flat Rate Scheme the sector for market traders is usually “Retailing not listed elsewhere” at 7.5% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.