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VAT - can I invoice including VAT ?

Discussion in 'General Forum' started by vjhybreed, Nov 4, 2006.

  1. vjhybreed

    vjhybreed New Member


    am just a new registered freelancer, and I wonder if on my invoice I can include VAT?

    On my client's purchase order, he added the VAT, so I wonder if I must do the same on my invoice. Let's say my invoice is 100£, and on his purchase order appears: 100£ + 17.50£ = 117.50£

    Shall I write the same on my invoice, or directly 117.50£ without menitionning the VAT.

    Am a first timer ;-)

  2. johnj

    johnj New Member

    Hi there

    My understanding is that you can only show VAT on an invoice if you are VAT registered.

    Its one of the pitfalls of not being registered in that you cannot claim back VAT on purchases or charge VAT on your sales.

    The upside is that you do not have to file VAT returns!(unless your income reaches the VAT threshhold in which case you HAVE to become registered)

    As you are not registered (?) you will not show VAT on your sales invoice and therfore the client will not have to pay VAT on your services.

    For him it matters not as he would only make a claim for the VAT paid to you (if registered) when filing his VAT return.

    Not an expert but thats how I see it.

    Maybe someone else could clarify further.

    If in any doubt you can always contact the VAT man (HM Customs & Excise)
    Their webpage is quite good and they will talk to you as a human being much to most peoples surprise!

    Hope this helps.

  3. chubba

    chubba New Member

    Yup, if you are not VAT registered then do not put VAT on the invoice!

    It can be beneficial to be VAT registered if you are making a fair amount of VAT rated purchases and also required if your turnover goes over a certain amount.

    If you decide to register for VAT then when you supply invoices you MUST have:

    Amount Before VAT
    VAT Amount
    Total Amount

    Also quote your VAT number and company number to be fully compliant. You can check find a template Word invoice here.

    There is a handy vat calculator here.
    Last edited: Feb 15, 2010
  4. Rizzo

    Rizzo New Member

    Flat VAT


    Nice to see a forum for us freelancers :)

    Just to say I find the flat VAT scheme an awful lot easier if you do register for VAT. You just calculate the VAT you owe as a percentage of your sales instead of totting up VAT charged and VAT added to your invoices. You need to apply first and they will tell you what that percentage will be (it depends on your business sector).

    More details here: http://customs.hmrc.gov.uk/channels...uides&propertyType=document&id=HMCE_CL_001208
  5. Stewart Mc

    Stewart Mc New Member


    I've used the flat rate for the last two or three years. Saves time –*you don't have to work out VAT on myriad phone bills, courier accounts, stationery purchases etc. Apparently you can opt out temporarily if you're about to purchase something big, like a new PC, office equipment etc –*but I haven't used that one myself.
  6. nirmalvechham

    nirmalvechham New Member


    Yes, Flat rate scheme is really good, so you don't need to keep track of VAT on your expenses, do all the calculation, calculate and declare the recoverables and non-recoverables, etc. You can save time for all these activities, however one of the major disadvantages is that if your supply of goods or services is zero rated/or exempt supplies, you still have to pay the VAT at the flat rate scheme.

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