Must VAT number appear on invoices

[Chas]

I'm buying a company which I will operate on a sole trader basis and have registered for VAT.

I'm in the process of ordering stationary - does my VAT number have to appear on my invoices?

I'm getting conflicting information from my accountant who says DONT put it on the invoices and an accountant who is running course for those setting up their own business who says you MUST.

If it is the case that you must then I'm horrified that VAT numbers are the same as your own PPS number, especially in this climate of "identification fraud'!

 

[money man]

As a company you must put your VAT number on invoices if you are registered. i didnt realise that it was different for a sole trader.
Im also surprised that you use your own pps number as a vat number that cant be right?? if you are buying a company then do you not have to run it as a ltd company?

 

[ubiquitous]

does my VAT number have to appear on my invoices?

Yes

If it is the case that you must then I'm horrified that VAT numbers are the same as your own PPS number, especially in this climate of "identification fraud'!

I don't think that this is a problem. In fact I have never heard of this being an issue before this. A PPS number is not confidential information.

I'm buying a company which I will operate on a sole trader basis

I don't really want to be pedantic but you will need to resolve in your own mind (with the aid of professional advice if necessary) whether you are running a sole trader business or a limited company which has a separate legal identity from you.

 

[Numbs]

A VAT number for a sole trader is made from your PPS number with IE stuck in front of it but as Clubman says, I don't see it as an issue. Also, if you are registered for VAT then you must include a VAT number on your invoices so that other business who you are invoicing can claim that VAT back as part of their normal bookkeeping.

 

[Chas]

Poor use of Language on my part - I'm buying a "business" not a company. It is currently being run on a sole trader basis and I intend to run it on a sole trader basis also.

I must be honest I thought I'd have to put my VAT number on my invoices but I didn't expect it to be the same as my PPS number!!

My accountant seems to think there are fraudsters at work who use VAT numbers to buy high value items in The North using other peoples VAT numbers in order to buy them VAT free. She seemed to think there are then consequences for the owner of the VAT number down the line - i.e. accusations of use of VAT number for personal purposes.

If someone was to use my VAT number illegally, what are the consequences to me?

 

[ubiquitous]

My accountant seems to think there are fraudsters at work who use VAT numbers to buy high value items in The North using other peoples VAT numbers in order to buy them VAT free. She seemed to think there are then consequences for the owner of the VAT number down the line - i.e. accusations of use of VAT number for personal purposes.

I don't understand how this risk is increased or lessened by the fact that your VAT number will be the same as your PPS number?

In any event, don't worry - the burden of proof is on the trader selling the goods in NI/GB/other EU country to verify the VAT number provided. They are also responsible for any VAT shortfall if an irregularity is discovered by the authorities.

Btw, I'm surprised your accountant is concerned about this. Most accountants advise customers on VAT registration issues an a regular basis, and the risk of third-party misuse of a VAT number is rarely if ever an issue of concern.

 

[fatmanknows]

I'm in the process of ordering stationary - does my VAT number have to appear on my invoices?

I'm getting conflicting information from my accountant who says DONT put it on the invoices and an accountant who is running course for those setting up their own business who says you MUST.

Your Accountant is Not an Accountant !

Change your Accountant

 

[hjrdee]

As per Leaflet IT49 from Revenue:

Issue of Invoices
Once you are registered for VAT, you are obliged to issue an
invoice when you supply goods or services to another
registered trader or to a person entitled to a repayment of
VAT.
The invoice must contain the following details :
1. Your name, address and VAT number
2. The name and address of the customer
3. The date of issue of the invoice and the date of supply of
the goods or services
4. A full description of the goods or services
5. The quantity or volume of goods supplied
6. The amount charged (excluding VAT), the VAT rate and
the amount of VAT.
7. A sequential number, based on one or more series, which
uniquely identifies the invoice.
The invoice must be issued within 15 days of the end of the
month in which the goods or services are supplied.
Retail business, e.g., grocer shops, pubs, etc., need not
normally issue formal VAT invoices.
It should be noted that a taxable person is required if
requested in writing to issue a VAT invoice in respect of a
transaction with an unregistered person in the State who is
entitled to a repayment of VAT. A taxable person is not
required to issue a VAT invoice to an unregistered person
otherwise, but may do so if he or she so wishes.​

[broken link removed]​

Have you decided if you are doing your Vat on Sales Invoice basis of Cash Receipts? Has your accountant explained the difference? What industry are you in?

 

[Chas]

VAT number should appear on invoices to VAT registered customers!!

Thanks for all your posts but I have decided to put the VAT number on - ubiquitous' comments regarding burden of proof put my mind at ease. I also went on the revenue site I didn't find leaflet IT49 but did find other links which indicated that a VAT registered person must put their VAT number on invoices.

I'm in the Laundry business, a mix between business clients - hotels, b&b's, rest homes and dry cleaning agency and cash clients mainly members of the public.

I was advised to opt YES for "Are you applying for the moneys received basis of accounting for goods and services?" . My understanding is this means I only pay VAT when the invoice is paid?

 

[liteweight]

Correct. I think after a year you can ask Revenue to make annual payments of VAT rather than bi-monthly. Cuts down on the paperwork but you have to be organised enough to keep the money aside. Otherwise when it's time to pay....

 

[Kiddo]

Correct. I think after a year you can ask Revenue to make annual payments of VAT rather than bi-monthly. Cuts down on the paperwork but you have to be organised enough to keep the money aside. Otherwise when it's time to pay....

I think you may be referring to the annual vat return. This involves completing one form a year but you must make payments by direct debit each month. You should estimate your liabiltiy for the year then divide by 12 and pay that amount each month. There are interest and penalty issues if the direct debit payments are a lot less than your liabiltiy at the year end.

 

[liteweight]

I think you may be referring to the annual vat return. This involves completing one form a year but you must make payments by direct debit each month. You should estimate your liabiltiy for the year then divide by 12 and pay that amount each month. There are interest and penalty issues if the direct debit payments are a lot less than your liabiltiy at the year end.

No, the VAT office will accept an annual payment. I have done this and have been audited....no problem.