Invoice without VAT (notice?)

Rombald

Hi,

I recently moved from Germany to Ireland and I'm currently working as a self-employed software developer for several clients in Germany.

I'm already registered as a sole trader and I already got my tax number (which is the same as my PPS No). I'm not registered for VAT, because I am (and I will be) below the threshold for services.

My current concern is, how do I notice my clients about the fact, that I will not charge them with VAT?
My current invoice layout has just the standard informations in it (address, invoice date, invoice no, the supplied services and costs for that etc.). And I've added the VAT field with the value "-" and the notice: "VAT not applicable".

But the finance accountant from one of my clients noticed me about the fact, that there is no explanation, why I'm not charging the VAT.
We have in Germany the "Kleinunternehmerregelung" (roughly means: a special law which gives you as a small business the possibility, to not charge a customer with VAT, if you're within the threshold). And you need to notice the customer about this within the invoice: "The value added tax is not calculated as a small business in the sense of § 19 (1) UStG." (translated to english), which points directly to the article in the law.
Is there anything similar here in Ireland? Or is it here "normal" to just not add any VAT related informations on the invoice?


Thanks for your help!

mrawkward

You can only charge VAT to an VAt unregistered client in another Eu state, it is normal not to charge VAT TO EU VAT registered clients in another state. Additionally as you are not registered for VAT here, you cannot charge VAT to anyone, anywhere !

If you are worried at all, just state on your invoice " non VAT EU export sale"

Mrs OBumble

It's "normal" to just not add any VAT related informations on the invoice.

mrawkward

Mrs OBumble wrote: »

It's "normal" to just not add any VAT related informations on the invoice.

That is what I was trying to say!!

Rombald

Hi!

Thanks a lot for your answers!
Just to get it clear: There is normally no reason on the invoice, why the VAT isn't charged if you are below the threshold, right?

mrawkward

correct!

davindub

To make things easier, especially when your invoices might not be custom designed, just include a vat line below your total and state "exempt".

You wouldn't believe how many sole traders charge vat and don't have breakdown of the amounts subject to each vat rate, the vat charged or just don't include the vat. Sometimes it needs to be check out, which is why they rang you.

Don't forget a vat registered business in Ireland 0 rates EU exports to vat registered EU customers, hence they might have some confusion when no vat details are included. They pay the vat rate applicable in their region on the purchase and claim an input for the same amount when a good is 0 rated. If bought from a exempt business they don't pay vat on the purchase.