If your income is below the registration threshold you do not have to register for VAT, and that changes what your invoices should show. The rules are simple: do not charge VAT, do not show a VAT number, and make it clear that no VAT is included.
What changes on the invoice
- No VAT line and no VAT rate. The total equals the net amount.
- No VAT number, because you do not have one.
- A short note that you are not VAT registered and no VAT has been charged.
Registration threshold
In the UK you must register once your taxable turnover passes £90,000 in any rolling 12 months. Other countries have their own limits, and some offer a small business scheme instead. From the day you register, your invoices change, so keep an eye on your turnover.
Example
INVOICE INV-0015 From: Sam Patel, 8 Oak Road, Bristol Bill to: Greenleaf Ltd Item Qty Rate Amount Copywriting, 1 Sep - 30 Sep 18 45.00 GBP 810.00 GBP Total 810.00 GBP Sam Patel is not VAT registered in the United Kingdom. No VAT has been charged.
How TrackLode handles it
Choose "Not VAT registered" in Settings and every new invoice gets zero VAT and the legend above. TrackLode hides your VAT number on the PDF while you are not registered, and warns you if you set standard VAT anyway. Existing invoices keep their own wording if you register later. Check with your accountant if you are near the threshold.