Not every invoice has VAT. But ‘no VAT’ can mean different things, and they do not all belong in the same place in your return.
Four reasons
- 0% rate: for example for supplies to customers outside the EU. You report the turnover, but charge no VAT.
- Exempt: some activities are exempt. You then usually cannot deduct VAT on your costs either.
- Reverse charge: the customer declares the VAT, see reverse-charge VAT explained.
- Small business scheme: you charge no VAT and reclaim none. You state that you use the scheme.
What goes on the invoice?
State the reason: for example ‘VAT reverse-charged’ with the customer’s VAT number, or ‘exempt from VAT’ with the legal basis. Without it the tax authority can still ask you for VAT.
How do you book it?
Record the invoice with the right VAT type or rate, so the turnover ends up in the right box of your VAT return. Not sure which reason applies to you? Ask your bookkeeper or the tax authority; this is general information, not advice.
This guide is general information, not tax advice. Check the current rules for your situation with the tax authority or your bookkeeper.