No Invoice - Private Purchase

Jonny303

Hi,

I am looking to purchase a piece of equipment for my company from a private individual.

Seller is not a business and thus will not issue a receipt. Can I write a cheque for this and record it as an asset purchase for the company?

Thanks

exaisle

Of course you can. Although the fact that the seller is not in business is not a genuine reason for not issuing a receipt.
He obviously cannot issue a VAT invoice, but he should give you something showing what he sold you, his name and address, the date, and the price.

If he continues to refuse to issue a receipt, have you considered that the equipment might not be his to sell.....or that it might be stolen?

If you are satisfied that it isn't stolen or otherwise illegal to buy, then make sure you keep a note of his name and address. If he won't give his address or he won't meet you there, then it's time that you put 2 and 2 together.

Jonny303

No its a genuine sale alright, but being sold for "cash". Again, can't see I am doing anything wrong by just making a note of where I got it and writing a cheque for it.

exaisle

Jonny303 wrote: »

No its a genuine sale alright, but being sold for "cash". Again, can't see I am doing anything wrong by just making a note of where I got it and writing a cheque for it.

The problem is that you could write a cheque for whatever amount you want. The receipt, no matter how "flimsy" gives you proof of purchase.

In the event of a Revenue Audit, the auditor may wish to see proof of purchase if you're claiming capital allowances on the equipment, particularly if it's a large item. If it's not an expensive item, then I wouldn't be too concerned.

seamus

Unless the seller is making a profit on the sale, then the notion of selling for cash doesn't really matter.

What level of price are we talking about - €1k, €5k, €10k?

Jonny303

8k

exaisle

If you give the seller a cheque with his name as the payee and cross it, marking the crossing "Account Payee Only", then that guarantees that he can only lodge it to his own account.

Still...somebody selling some machinery for €8k and refusing to give a receipt/invoice sounds suspicious to me.

Are you getting a really good deal? If something seems too good to be true, then it probably is...

lakill Farm

keep a copy of the advertisement for sale, showing details like model no, price contact details etc

keep a copy of emails to seller and a copy of cheque/draft to pay for the item

You should be well covered then.

If its a vehicle you will have log book etc.