A company asked me for a VAT invoice (but I don't pay VAT)...

Nov 16, 2015 10 Replies

I did a bit of graphic design work for a major company and they agreed the work, but now they are saying they want a VAT invoice from me so that they can pay me. However, I don't pay VAT. I was under the impression that only a VAT-paying company could issue a "VAT invoice". Am I right about that?



I'm concerened that I could be breaking the law if I head my invoice "VAT Invoice".



Any advice, please?



TIA


Send them an invoice, and say "I'm not VAT registered".

A proper invoice with nothing about VAT on it is what you should give them. I don't think a "VAT invoice" is anything more than an invoice with the VAT shown in the way(s) specified by HMRC and issued by a VAT registered business.

I think the OP is reading too much into "VAT invoice" where what they really want is an invoice so they can pay him.

... and I meant to add, maybe a covering letter saying that you are not VAT registered.

They want to pump your "VAT Registered Number" into a widely available algorithm to see if you're genuine.

If you're not, they'll refuse to pay and threaten to report you to HMRC if you persist in requesting payment.

I've had that a few times, when selling my products to government bodies such as schools and hospitals who can claim VAT back. I simply apologised over the phone or by email and said I'm not VAT registered. They said "Oh well we can't claim some money back" and bought it anyway.

Of course they can't, because there's nothing to claim back.

If you had charged them VAT they could have claimed that back, but you didn't so there was no VAT there in the first place to claim back.

I did in effect charge them VAT as the parts I bought to make the product had VAT on them.

On Wednesday, November 18, 2015 at 11:59:36 AM UTC, Tough Guy no. 1265 wrot e:

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es such as schools and hospitals who can claim VAT back. I simply apologis ed over the phone or by email and said I'm not VAT registered. They said "Oh well we can't claim some money back" and bought it anyway.

had VAT on them.

Perhaps an alternative might be for them to pay for the parts directly (rec laiming the VAT) and for you to invoice them only for your time in assembli ng the product.

Possibly, although I don't think they wanted that hassle.

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