The VST Photometric Halpha Survey of the Southern Galactic Plane and Bulge (VPHAS+) is surveying the southern Milky Way in u, g, r, i and Halpha at 1 arcsec angular resolution. Its footprint spans the Galactic latitude range -5 < b < +5 at all longitudes south of the celestial equator. Extensions around the Galactic Centre to Galactic latitudes +/-10 bring in much of the Galactic Bulge. This ESO public survey, begun on 28th December 2011, reaches down to 20th magnitude (10-sigma) and will provide single-epoch digital optical photometry for around 300 million stars. The observing strategy and data pipelining is described, and an appraisal of the segmented narrowband Halpha filter in use is presented. Using model atmospheres and library spectra, we compute main-sequence (u - g), (g - r), (r - i) and (r - Halpha) stellar colours in the Vega system. We report on a preliminary validation of the photometry using test data obtained from two pointings overlapping the Sloan Digital Sky Survey. An example of the (u - g, g - r) and (r - Halpha, r - i) diagrams for a full VPHAS+ survey field is given. Attention is drawn to the opportunities for studies of compact nebulae and nebular morphologies that arise from the image quality being achieved. The value of the u band as the means to identify planetary-nebula central stars is demonstrated by the discovery of the central star of NGC 2899 in survey data. Thanks to its excellent imaging performance, the VST/OmegaCam combination used by this survey is a perfect vehicle for automated searches for reddened early-type stars, and will allow the discovery and analysis of compact binaries, white dwarfs and transient sources.