Invoice without VAT
In certain cases, an invoice can be issued without applying VAT. This doesn't mean it can be left off freely: it must be justified under the applicable regulations.
Common VAT exemption cases
Certain regulated educational and training services.
Healthcare services provided by medical professionals.
Insurance operations and certain financial services.
Exports and certain cross-border operations.
Small-business VAT exemption schemes, depending on the country and turnover thresholds.
What the VAT-free invoice must state
Even if VAT isn't applied, the invoice must clearly state the reason for the exemption (for example, "VAT exempt under [relevant regulation]"), so it's clear it wasn't simply forgotten.
Difference from simply not being VAT-registered
Invoicing without VAT because of an exempt activity or scheme is not the same as leaving it off by mistake. If you're unsure whether your activity is exempt, check with your accountant.
Example VAT-free invoice
Regulated private tutoring class: £300. Note: "VAT exempt". Invoice total: £300.
Create your VAT-free invoice
In PreFactur you can select 0% as the VAT rate for each line and add the exemption note in the notes field.
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