Sole Trader, Webshop - Invoicing/Charging VAT?

T

Tailorz

Registered User
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Hi Everyone,

Soon I will start a small webshop (buyers from all over the world) as a sole trader where I will sell goods. I think I won't have to register for VAT as the income won't reach 75K EUR.

- So my question is, how to display the prices on the website? I assume without VAT.
- And how to provide the invoice? I guess no VAT is needed anywhere there. (will use Paypal)

Thanks,
TZ
 
The €75K registration threshold applies to sale of goods (and not services). So long as what you are selling in tangible you should be okay.

As you are not vat registered no need for anything else. Price on your website is just that and your invoice would be like any other invoice without vat. The vat regulations provide for a lot of detail on what goes into an invoice but these don't apply to you. Basic details, I would imagine, will suffice.
 
dublin67 said:
The €75K registration threshold applies to sale of goods (and not services). So long as what you are selling in tangible you should be okay.

As you are not vat registered no need for anything else. Price on your website is just that and your invoice would be like any other invoice without vat. The vat regulations provide for a lot of detail on what goes into an invoice but these don't apply to you. Basic details, I would imagine, will suffice.
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Thanks that sounds great, one more question. Do you think a personal bank account will be enough? As everything will be through paypal and I read the somewhere it is not a must to have a business bank account.
 
No, a business bank account is not strictly necessary but is good practice in my view. The advantage with a having a separate business account is that all the transactions going through it are business. You are required to keep records for six years and this would include invoices and bank statements. I would strongly recommend keeping it separate from your personal account more for keeping track of things and not mixing personal/business. You will have transfers from your business account to your personal account which is fine but I wouldn't mix the two - it will be very hard to keep track of everything (esp if you get a revenue audit of some ype going back two years).
 
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dublin67 said:
No, a business bank account is strictly necessary but is good practice in my view. The advantage with a having a separate business account is that all the transactions going through it are business. You are required to keep records for six years and this would include invoices and bank statements. I would strongly recommend keeping it separate from your personal account more for keeping track of things and not mixing personal/business. You will have transfers from your business account to your personal account which is fine but I wouldn't mix the two - it will be very hard to keep track of everything (esp if you get a revenue audit of some ype going back two years).
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Sorry I did not get your first sentence. So it is not necessary, right?
 
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