Client Asked for a VAT Invoice - Help Needed

by Nail Yener

Posted: 13 years ago 21 replies

OFFLINE MARKETING

Hi,

I am working with a client from the UK and he asked if I could provide a VAT invoice.

I am new to the offline world and I don't have an established business yet (I will have soon), so as a freelancer can I send him a VAT invoice? Is there a template or something like this? How do you handle such clients if you don't have an established business yet?

Thanks for your help.

#asked #client #invoice #needed #vat

jimbo13

13 years ago

[DELETED]

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tryinhere

13 years ago

Originally Posted by jimbo13

PS: PM me your e-mail if you want me to knock up a quick one to show you what I mean.

If you do not live in the UK though would you still be required to produce a VAT invoice ? as his country would not operate under the VAT system or am I wrong and it would be better to consult a local account in the country of origin ?

Thanks
1 reply

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jimbo13

13 years ago

If I want one he has to give me one. It is because is because I want to claim it back.

He just has to knock something up on word.

I'm just e-mailing him one.

Dan

[ 1 ] Thanks
4 replies

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jimbo13 13 years ago

Don't all tourists claim something back?

No idea of the ins and outs but really I think they want a proper invoice for their records.

Alistair, God knows mate. It is something to do with claiming it back and shuffling it about but if they have asked him for one then it is best to just scribble one out for them.

Makes no odds to Nail living in Turkey, bt if you earn over £70k in the UK you have to charge VAT on everything so generally expect businesses to give you a VAT receipt.

When you buy petrol, if you wear a suit they normally always ask if you want a VAT receipt as they think you are on company business.

Dan
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Nail Yener

13 years ago

Originally Posted by jimbo13

If I want one he has to give me one. It is because is because I want to claim it back.

He just has to knock something up on word.

I'm just e-mailing him one.

Dan

Dan, thank you very much. We need more people like you on board.

[ 1 ] Thanks
1 reply

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jimbo13 13 years ago

What, experts in making stuff up with a straight face?

Dan
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- newbim 13 years ago
  
  Originally Posted by jimbo13
  
  What, experts in making stuff up with a straight face?
  
  Dan
  
  Haha, I like it.
  
  Thanks
  
  1 reply
  
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  If what I said helps, let me know, throw me a 'thanks'.
  
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  asnorth 13 years ago
  
  Maybe the client can claim a "reverse charge" as outlined in this hm customs info (see part 3)
  http://www.hmrc.gov.uk/vat/managing/.../importing.htm
  
  tony
  
  Thanks
  
  1 reply
  
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  blackjack 13 years ago
  
  Nail and everyone
  
  You can only produce VAT invoice ( or charge VAT) if you are a VAT register Company/person/Business.
  
  If your total sales are less than £70k per 12 months in UK then you don't need to register or charge VAT. If your sales are more than £70k per year then you are required by Tax Law to register and start charging VAT.
  
  When someone ask me VAT invoice, my answer is "I am not VAT register because I am below VAT registration requirements".
  
  Also once you register depending on your business you could be partial exempt, fully exempt or zero rate vat register.
  
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Tonybuk

13 years ago

Originally Posted by jimbo13

If I want one he has to give me one. It is because is because I want to claim it back.

He just has to knock something up on word.

I'm just e-mailing him one.

Dan

Producing a VAT invoice if you are not registered for it, just so a customer can claim back is illegal.

If you are dealing mainly with larger customers who are VAT registered, then you can apply for voluntary registration, but take it from me, the extra paperwork isn't worth it!
Simply if you, the seller, are not registered, you cannot charge VAT and your customer cannot claim it back.

HTH,
TonyB

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Richard Tunnah

13 years ago

Originally Posted by jimbo13

If I want one he has to give me one. It is because is because I want to claim it back.

He just has to knock something up on word.

I'm just e-mailing him one.

Dan

It's illegal to charge vat if you aren't VAT registered. On a vat invoice you'll need to quote your registered VAT number.

Rich

Thanks
1 reply

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Richard Tunnah 13 years ago

You need proper accountant advice in your own country. That's because some things are nil vat between EU countries where you may be better to register for vat in your country and he can claim it back. It's a complicated subject I leave to people that know like accountants.

Rich
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alistair 13 years ago

It's a bit confusing to me. So if he's made up an invoice and charged VAT doesn't this mean he now owes the VAT to HM revenue and customs?
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k60mall 13 years ago

As far as I know you only need to provide a VAT invoice when you are actually charging them VAT.
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jasonTBA 13 years ago

If you are not VAT registered then you will not be able to send him a VAT invoice. Basically he wants to claim back the VAT on his purchase, however you have not charged him any VAT because you do not need to.

If anyone is wondering what to include in a VAT invoice check out this page from the HMRC, if you don't include all of the required fields then it is not a proper VAT invoice and the person receiving it will not be able to claim back the input VAT

http://www.hmrc.gov.uk/vat/managing/...t-invoices.htm
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- jimbo13 13 years ago
  
  I wonder who the company was that asked for it.
  
  Dan
  
  Thanks
  
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NetMediaGeek 13 years ago

Nail

Blackjack and Jason are right. Even if you wanted to produce a VAT invoice you couldn't unless you are VAT registered. He only wants a VAT invoice so he can off set it agains his VAT bill. If he need an invoice for his records. Just send him one but do not mention VAT on in..
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Nail Yener

13 years ago

Thank you very much for all your advice warriors. Once more I am glad to be a member of this community as it is full of helpful people from all areas of expertise.

Thanks
1 reply

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jimbo13

13 years ago

Okay everyone I have e-mailed Nail to just do a normal Invoice and correct my duff info.

Good job this isn't the legal forum eh?

I'll publicly apologise here. Sorry Nail.

Dan

Thanks
1 reply

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jasonTBA

13 years ago

Originally Posted by jimbo13

Okay everyone I have e-mailed Nail to just do a normal Invoice and correct my duff info.

Good job this isn't the legal forum eh?

I'll publicly apologise here. Sorry Nail.

Dan

It's better to be wrong on a friendly board like this that it would be in a business meeting as you may lose credibility which could lose the client/partner etc.

All tax is a pain as well, before I took my tax qualifications I thought that the government would make paying tax and calculating how much tax is owed easy to do. Mainly because it is in their interest for people to be able to calculate tax and pay it easily.

However after learning all of the little technical details and all of the varying payment dates I have to say it's ridiculously complex!

If you are a UK business owner and are currently doing your own tax returns I strongly recommend you hire a tax accountant because I guarantee 99% of people are either:

a) Not paying enough tax and are therefore open to penalties and fines from HMRC

b) Paying too much tax. A tax accountant will be able to help you better manage your finances so you can minimise your tax liability.

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jimbo13 13 years ago

Hi Jason

Probably going off the topic now but lets say Nail for example sells websites to UK businesses and he earns over £70k from doing so.

Where does he pay tax and would he have to be UK VAT registered?

Because how would Turkey Inland Revenue know he was doing it?

Same as if I was selling to Texas for example.

Dan

PS: I've deleted my post from above now as it was duff info.
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jasonTBA 13 years ago

The following answer is not definitive: I honestly don't know how websites are classed by the HMRC for VAT purposed. Imagine however that Nail sells computers:

Nail would never have to pay VAT as he by way of his residency is not taxable in the UK and Turkey is not in the EU (is it?), so VAT has no meaning to him. He might pay taxes in Turkey but I have no knowledge of their tax system.

His customers however because they are importing from a non-EU country will be charged VAT at the place of import, usually a port or airport.

That is the theory behind it, in practice because websites are intangible and don't go through any customs I don't know how it would work.
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Client Asked for a VAT Invoice - Help Needed

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