Can I Invoice Without a VAT Number?

Can I Invoice Without a VAT Number?

Whether you’re a freelancer, small business owner, or contractor, one common question arises when issuing invoices: Can I legally send an invoice without a VAT number? The answer depends on your country’s VAT laws, your business status, and who your client is.

What Is a VAT Number?

A VAT (Value Added Tax) number is a unique identifier assigned to businesses that are registered for VAT. It allows tax authorities to track taxable transactions and helps ensure businesses are collecting and remitting the right amount of VAT.

Can You Invoice Without a VAT Number?

Yes, in many cases, you can invoice without a VAT number, but only under certain conditions. Below are the typical scenarios where this is permitted:

  • You are not VAT registered because your income is below the VAT threshold.
  • You are a freelancer or sole trader operating under a simplified tax regime.
  • You operate in a country where VAT registration is not required for certain business types.
  • You are providing services to countries outside your tax jurisdiction.
Important: If you are VAT-registered, you are legally required to include your VAT number on all invoices.

What Should Be Included on an Invoice Without a VAT Number?

Even without a VAT number, your invoice should still be complete and professional. Here’s what to include:

  • Your name or business name and address
  • Customer’s name and address
  • Invoice number
  • Date of invoice
  • Description of goods or services
  • Net amount (excluding VAT)
  • Statement: “No VAT charged – Not VAT registered”

Country-Specific Rules

United Kingdom

In the UK, you can invoice without a VAT number if you are under the threshold (£90,000 as of 2024). Just ensure you do not charge VAT and state clearly that you’re not VAT registered.

European Union

In the EU, rules vary by country. Some allow small businesses to operate without VAT registration, but once you cross a threshold or deal with EU-based VAT-registered businesses, registration may be mandatory.

United States

The U.S. does not use VAT but instead applies sales tax. However, when dealing with international clients who expect VAT-compliant invoices, clarity about your tax status is important.

Can You Charge VAT Without a VAT Number?

No. It is illegal to charge VAT on an invoice if you are not VAT registered.

Never include VAT or a fake VAT number on an invoice if you’re not legally registered. This can lead to legal penalties, audits, and damage to your business reputation.

What If a Client Requests a VAT Number?

If your client insists on a VAT number and you’re not registered, explain your business status and local VAT rules. Often, clients ask for a VAT number for record-keeping or compliance, especially in B2B transactions.

You can include a note like:

“This business is not VAT registered; therefore, no VAT has been charged.”

When Do You Need to Get a VAT Number?

  • You cross the VAT threshold in your country
  • You sell digital services to consumers in the EU or other VAT-enforcing jurisdictions
  • You wish to reclaim input VAT on business expenses
  • You want to appear more professional to B2B clients

Invoicing Internationally Without VAT

If you’re invoicing clients in another country, VAT may or may not apply. For instance:

  • If you’re in Canada and invoicing the U.S., GST/HST may not apply
  • If you’re in the UK and selling to EU customers, reverse charge may apply
  • If you’re in India and exporting services, GST may be zero-rated

Always check cross-border tax rules or consult an accountant.

How to Appear Legitimate Without a VAT Number

To maintain professionalism, your invoice can still include:

  • A unique invoice number
  • Terms and conditions
  • Payment methods
  • Your business registration or license number (if any)

You can also add a note that reads:

“This invoice has been issued in accordance with applicable national regulations. The supplier is not VAT registered.”

Risks of Invoicing Without a VAT Number

  • Limited ability to work with large corporations or government contracts
  • You can’t reclaim input VAT on business purchases
  • May be seen as less “established” by some clients
  • Risk of accidental non-compliance as your business grows

Should You Register for VAT Voluntarily?

In many countries, you can register voluntarily for VAT even if your earnings are below the threshold. Benefits include:

  • Reclaiming input VAT
  • Boosting client trust
  • Access to B2B contracts

However, this also comes with administrative responsibilities like filing VAT returns and maintaining records.

Summary

Yes, you can invoice without a VAT number if you are not legally required to register for VAT. Just ensure your invoice is clear, professional, and does not mention VAT amounts or contain a false VAT number.

If your income grows or your clients demand it, consider registering for VAT to stay compliant and take advantage of tax benefits.

Next Steps

  • Check your country’s VAT registration threshold
  • Consult with a tax advisor about your obligations
  • Use a proper invoicing tool to stay organized
  • Educate your clients if they request VAT where it doesn’t apply

Being transparent and compliant builds trust with clients and avoids trouble with tax authorities.

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Calculators:

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  30. France Vat Refund Calculator
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