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VAT Threshold

  • 06-08-2020 5:21pm
    #1
    LePrince
    Registered Users Posts: 26 ✭


    Hello,


    I am a sole trader (legal entity is myself, but I have a business name registered at CRO). I am not registered for VAT because I am under the threshold.


    I recently created an invoice: 100 EUR and didn't add any vat price for the reason stated above, the customer was surprised at the fact that I didn't have a VAT number.


    I am thinking of adding a mention to my future invoices in the notes at the bottom. Do you have a recommendation? I want to point to an article, should I point to the revenue website? Or is it better I point to a EU website? It would be best if I could simply refer to a directive number that matches my situation.


    I saw this: https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf


    The number 3 underneath referring to small businesses seemed appropriate, but for Ireland it reads "NA".



    Thank you for anyone who can help.


Comments

  • #2
    Calahonda52
    Registered Users Posts: 12,191 ✭✭✭✭Calahonda52


    It reads N/a because there is no exemption

    You situation is that you are not registered for VAT because you are under the threshold. you decided not to, because you don't have to yet as you are below threshold.

    You can always register for VAT if below the threshold.

    “I can’t pay my staff or mortgage with instagram likes”.



  • #3
    LePrince
    Registered Users Posts: 26 ✭LePrince


    Calahonda52 wrote: »
    It reads N/a because there is no exemption

    You situation is that you are not registered for VAT because you are under the threshold. you decided not to, because you don't have to yet as you are below threshold.

    You can always register for VAT if below the threshold.


    To be clear: what directive/article do I quote on my invoices to reflect that?

    You are telling me about my situation and that I can change it, thanks but what I want to know is what to write on my invoices so that my clients know why there is no VAT number. Another way to put it: what do other businesses who are in the same situation (under the threshold) write on their invoices?


  • #4
    silent_spark
    Registered Users Posts: 461 ✭✭silent_spark


    “LePrince is not VAT registered.”


  • #5
    Will Yam
    Registered Users Posts: 671 ✭✭✭Will Yam


    LePrince wrote: »
    To be clear: what directive/article do I quote on my invoices to reflect that?

    You are telling me about my situation and that I can change it, thanks but what I want to know is what to write on my invoices so that my clients know why there is no VAT number. Another way to put it: what do other businesses who are in the same situation (under the threshold) write on their invoices?

    I wouldnt bother. Leave well enough alone. Just tell your 100e customer what the story is.

    Putting something like that on an invoice raises questions - not the least being your business is too small to have to register for vat.


  • #6
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    It’s none of your customers business why you’re not registered. You put nothing on an invoice referring to the absence of VAT. If you were registered you’d just be adding the VAT onto your charges, the customer (if entitled to input credit for it) would be claiming that back so they ultimately end up exactly where they are at present.


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  • #7
    LePrince
    Registered Users Posts: 26 ✭LePrince


    Thank you to those who have responded. I will follow the recommendations and leave it at that.


    The reason why I posted this question is because the customer wasn't aware of EU VAT thresholds and he asked me about the absence of VAT as if I was doing something wrong. He also asked me to give him an official link to support my reasoning. Long story short: I wanted to preempt such misunderstandings in the future and assumed a note referring to an article would be appropriate.


  • #8
    Will Yam
    Registered Users Posts: 671 ✭✭✭Will Yam


    LePrince wrote: »
    Thank you to those who have responded. I will follow the recommendations and leave it at that.


    The reason why I posted this question is because the customer wasn't aware of EU VAT thresholds and he asked me about the absence of VAT as if I was doing something wrong. He also asked me to give him an official link to support my reasoning. Long story short: I wanted to preempt such misunderstandings in the future and assumed a note referring to an article would be appropriate.

    You might explain to your customer that if there is any vat liability, under the law it is the supplier who is liable, never the customer.


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