Sole trader being asked to send billable invoice with VAT number on it

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dagaul101

Guest
I have just started out as a sole trader, and I have been promoting an affiliate network. They have asked me to send them a billable invoice with a VAT number on it or I won't be paid. I am not registered for VAT hence don't have a VAT number, not registered as a company but only as a sole trader in my name. What exactly goes on a billable invoice? Simply my name, address, and the amount I am due on a Word document suffice? What do I put down for a VAT number if I am not registered for VAT? Is there some default number I can put down? Thanks in advance
 
What do you anticipate your turnover for 2010 will be? I'm assuming you're supplying some form of service. If that is the case, the relevant registration threshold is €37,500. However, you can opt to register for VAT regardless of that threshold.
 
Quite simply, if you are not registered for VAT you cannot charge it. As Pat stated it is your option / choice to register for Vat, but be aware that as a sole trader, all business activity will be subject to Vat. It will not be a case of picking and choosing as to who you want to charge and who not to charge.
 
You are not required to be VAT registered if you are below the threshold, therefore you don’t charge it and you don’t mention it at all. You may wish to mention there is no VAT charged as your business is not VAT registered if people ask, but you simply don’t need to mention it at all
 
In the current climate, companies will not trade with you unless you are also a company or a VAT registered sole trade (for services).

They are afraid of the Revenue clampdown on 'employee v self employee'. If you are not a VAT registered sole trader, Revenue could easily regard you as an employee of the company you are supplying and subject the company to PAYE/PRSI on your billable work. This would be esp. the case if they were your only customer (which they won't know of course).
 
Paddy199 said:
In the current climate, companies will not trade with you unless you are also a company or a VAT registered sole trade (for services).

They are afraid of the Revenue clampdown on 'employee v self employee'. If you are not a VAT registered sole trader, Revenue could easily regard you as an employee of the company you are supplying and subject the company to PAYE/PRSI on your billable work. This would be esp. the case if they were your only customer (which they won't know of course).
Click to expand...

Being VAT registered or not should have no impact on the 'employee vs self employed' issue.
 
If you do have to register for VAT then you chould check with the Revenue Commissioners whether you can pay VAT on a cash received basis. This can apply if less than 10% of your customers are registered for VAT or your turnover is less than €1m.
 
Pat,

For services, if you are not registered for VAT this means your t/o is less than €37,500. Question: Is this guy above board? Is it someone I want to get involved with? Is there any exposure to me?

The poster says he is only starting out. Maybe he has worked as an employee with the company before? Maybe his first invoice was for €6k and will be recurring?

Finally, A non-established person supplying taxable goods or services in the State is obliged to register and account for VAT irrespective of the level of turnover.

There might be a bit of information we are missing here that says to the company that he needs to register.
 
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