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desperately require invoice/vat help
Hello, i know this is not about being a freelancer, but i figure you guys understand the system quite well and might be able to advise me.
I run a website, it's not registered as a company or anything like this. I have just struck an advertising deal for a reasonable figure and they want me to send over an invoice for the amount, however i'm not VAT registered and at present i'm not sure if this causes an issue. Does it?
Can i send an invoice for this service without being VAT registered and does it cause complications for the other company involved in the transaction.
I really need some help guys!
I run a website, it's not registered as a company or anything like this. I have just struck an advertising deal for a reasonable figure and they want me to send over an invoice for the amount, however i'm not VAT registered and at present i'm not sure if this causes an issue. Does it?
Can i send an invoice for this service without being VAT registered and does it cause complications for the other company involved in the transaction.
I really need some help guys!
- Contact in PM
MickeyFinn
Messages count : 120Likes count : 0Registration : 30 October 2006No issue here. Just make out an invoice - there is a template in the resources section in the right hand menu of the site here.
Make sure it has your name and address on it and send it off. Obviously as you are not VAT registered then do not add VAT to the final amount.
Congratulations on getting the deal :banana - Contact in PM
neologan
Messages count : 3Likes count : 0Registration : 27 February 2008hey thank you!
The gentleman I spoke to was not an accountant, so he said without a VAT number he might have trouble signing off on the deal for VAT reasons – this is why I got concerned.
Am I anywhere near correct in saying that when the one selling the service isn't VAT registered, the other party can ignore VAT on their end, so it’s a non issue?
I'm so very much a novice here, I just want to be prepared so that if I get a phone call saying they can't accept it, I have a rebuttal.
many thanks. - Contact in PM
MickeyFinn
Messages count : 120Likes count : 0Registration : 30 October 2006Makes no difference to them if you are VAT registered or not.
If you submit an invoice without VAT then they cannot reclaim the VAT that they pay you. So they pay you less in effect but cannot claw back the VAT they pay you against other things they buy. Really makes no difference apart from how they account for your invoice at their end. - Contact in PM
neologan
Messages count : 3Likes count : 0Registration : 27 February 2008so if the fee we agreed on was say, £100.00 and i'm not vat registered, i create an invoice for £100.00.
If i was VAT registered i would have created an invoice for £117.50, providing the £100 fee we agreed on was not including VAT in the first place? - Contact in PM
MickeyFinn
Messages count : 120Likes count : 0Registration : 30 October 2006Exactly. And if you do ever go VAT registered then make sure you negotiate all costs before VAT 😃