Invoices without VAT number! We need VAT number
We booked freelancer on PPH, but 17 invoices are without VAT number.
Invoices without VAT number are not usable for accounting purposes and can not deduce the costs.
We need a regular invoice, stating the seller's VAT number!
Can PPH fix this issue?
Best wishes
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Hi Mattias,
Many thanks for your message. We actually already have the option for VAT numbers to be shown in invoices, however, the seller must select this option and input their VAT number within their settings for this to be visible. Please contact your freelancer and tell them that you need their VAT number adding to the invoice and they will find this option in their settings.
Thank you and have a nice day.
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Hi Kelly,
Thanks for your answer BUT I already did what you wrote and freelancers answered me they DO NOT have a VAT number!
So, according to your answer means that we agencies can not trust and use Peoplehour anymore as you do not provide this information? Data that is highly important for us!
Look forward to your reply.
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Hi,
that is incorrect, the seller may be vat excampt under a certain threshold but as a buyer you must be able to dedect your expenses from your earnings and if you have abusiness that has advertising expenses then you can claim them as an expense. unless of course the seller doesnt give you a vat number in which case you cant. which leaves you with extra expenses and paying a ton of tax as you cant deduct it.
sellers should provide a vat number regardless of their situation as the buyers situation is a separate one.
anybody can say they are exempt in their country. so they should all provide tax numbers by default. its not fair on the buyers at all.
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Let me explain how this works in the UK.
A freelancer may or may not be VAT registered. You must register for VAT with HM Revenue and Customs ( HMRC ) if your business' VAT taxable turnover is more than £85,000. When you register, you'll be sent a VAT registration certificate. This confirms: your VAT number.
If yourbusiness does NOT exceed £85,000 of VAT taxible income you dont need to register. If you don't register you DO NOT HAVE a VAT number.
If the business has not registered it CANNOT give you a VAT number because it hasn't got one.
Registering results in a LOT more paperwork and hassle, so there is little advantage for a small business to do it.
If PPH are charging or deducting vat from you, then take it up with them as they must be VAT registered, but many freelancers in the UK are not.
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We are VAT registered, and on work we bid on we make a new line and show the VAT separately on the proposal so it is clear what they can deduct.
On hourly rate items however, there is only one line for costs, so we have to put in the covering note/text that the price quoted includes VAT.
What you do get is people that say includes VAT, and they are not VAT registered. When taken to task, they say it includes any VAT payable ... where its not payable it goes in their pocket as extra and Clients that factored on the discount of tax amount (1/6 cost quoted) loose the ability to re-claim.
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