How Do You Invoice Clients If You’re Not VAT or Sales-Tax Registered?

Understanding the “Not Registered” Position (and Why It Matters on Your Invoice)

If you’re freelancing, running a small service business, or testing a new product idea, there’s a good chance you’re not VAT-registered (in VAT countries) or not registered to collect sales tax (in sales-tax jurisdictions). That’s extremely common—especially in the early stages—because registration is often tied to thresholds, location rules, product types, and sometimes voluntary choices. But here’s the important part: being unregistered doesn’t mean you can’t invoice professionally. It just means your invoices must clearly reflect that you are not charging VAT or sales tax, and the totals you present are “tax not charged” rather than “tax included.”

Clients are used to seeing tax lines. Some will even ask, “Can you add VAT?” or “Where’s the sales tax?” If you’re not registered, you usually can’t add those taxes to your invoice (and shouldn’t try). Instead, you invoice the net amount as your full total, and you state the correct reason tax isn’t being added. That gives your client clarity, keeps your paperwork clean, and reduces the risk of misunderstandings that lead to payment delays.

From a practical standpoint, most invoicing headaches for non-registered businesses come from inconsistent wording, missing fields, or messy numbering that makes tracking payments harder later. The simplest fix is to use an invoicing system that’s designed to produce clean, compliant, client-friendly invoices from day one. Invoice24 is built for exactly that: fast invoice creation, professional templates, correct tax handling for non-registered users, and the features you need to get paid—without forcing you into complicated accounting workflows.

Can You Invoice Without VAT or Sales Tax Registration?

Yes. You can invoice clients even if you’re not registered for VAT or sales tax. In fact, invoicing is often a basic commercial requirement even before you reach any tax thresholds. Your invoice is primarily a record of the transaction: who sold what, to whom, when, and for how much. Tax registration changes whether you must add specific taxes and what statements you must include—but it doesn’t remove your ability to invoice.

The key is accuracy: if you are not registered, you generally should not charge VAT or sales tax. If you do charge it anyway, you may create a situation where you’ve collected tax you’re not entitled to collect, and you might not be able to issue valid tax invoices. That’s a compliance risk and can create awkward conversations with clients who want to reclaim VAT or track sales tax properly.

This is where Invoice24 helps: it allows you to set your tax status and ensures your invoices display the correct treatment, whether that’s showing no tax line at all or clearly stating “VAT not charged” or an equivalent statement you choose. It’s one of those small details that makes your invoices feel professional and prevents the “Can you resend this?” email chain that delays payment.

What Your Invoice Must Include (Even When You’re Not Registered)

Even without VAT or sales tax registration, your invoices should still include the standard essentials. Clients rely on these for their own bookkeeping, approvals, and payments. Missing information is one of the top reasons invoices get stuck in “accounts payable limbo.”

A professional invoice should include:

1) Your business details
Your name or business name, address, and contact information. If you trade under a brand name, include it consistently.

2) Your client’s details
Client name and address (and sometimes their purchase order reference or internal department contact).

3) An invoice number
A unique, sequential invoice number. This matters for recordkeeping, refunds, and disputes. Invoice24 automatically generates consistent numbering so you don’t accidentally duplicate or skip numbers when you’re busy.

4) Issue date and due date
A clear issue date plus payment terms (for example, “Due in 14 days” or a specific due date). Invoice24 makes it easy to set default terms so every invoice is consistent.

5) Description of goods/services
List what you provided, the quantity (if relevant), the rate, and any discounts. Clear descriptions reduce disputes.

6) Subtotal and total
If you’re not charging tax, your total will usually equal your subtotal. Make that visually obvious.

7) Payment instructions
Bank details, payment link, card options, or any method you accept. The easier you make it to pay, the faster you get paid. Invoice24 supports clean payment sections so clients don’t have to hunt for details.

8) A tax status note (recommended)
If your clients might expect VAT or sales tax, add a short line explaining why tax is not charged. This prevents confusion and back-and-forth emails.

How to Show VAT or Sales Tax When You’re Not Registered

When you’re unregistered, the simplest approach is usually: do not include VAT or sales tax as a line item. That means:

• Your invoice shows a subtotal.
• The tax line is either omitted or shown as 0.
• The total equals the subtotal.
• A short note clarifies that you are not registered and therefore not charging VAT/sales tax.

The invoice should never suggest you’re charging a tax you aren’t registered to collect. Avoid adding “VAT 20%” or “Sales tax 8.25%” unless you are properly registered and required to do so. Also, avoid using language like “VAT included” if you are not VAT-registered. That phrase implies you have charged VAT within the price, which can cause client accounting problems.

Invoice24 makes this easy because you can configure your tax setting once. When your status changes later (for example, you become VAT-registered), you can update your profile settings and your invoice templates will follow suit going forward—no need to rebuild your whole invoicing process.

Suggested Wording: What to Write on the Invoice

Exact wording can vary depending on your location and the type of tax regime, but the principle is the same: be transparent and concise. Here are practical examples that work well in many business-to-business scenarios:

If you are not VAT-registered:
“VAT not charged – supplier not VAT registered.”

If you are not registered to collect sales tax:
“Sales tax not charged – seller not registered/required to collect sales tax.”

If your price is the full amount payable:
“Total due equals subtotal. No VAT/sales tax charged.”

Place the note near the totals section or in the footer so it’s easy to find. You want your client’s finance team to understand at a glance why the tax box is empty.

In Invoice24, you can add custom notes to your invoice footer and save them as defaults, so you don’t have to rewrite the same explanation each time. That’s especially useful if you invoice frequently or need slightly different wording for different client types.

When Clients Ask: “Can You Add VAT?” or “Where’s the Sales Tax?”

It’s normal for clients to ask this, particularly if they typically buy from registered suppliers. The best response is calm, factual, and short. You can say:

“I’m not VAT/sales-tax registered, so I’m unable to charge VAT/sales tax on my invoices. The invoice total is the full amount payable.”

Sometimes a client will push back because they prefer suppliers who are registered, or because they expect to reclaim VAT. If you’re below the threshold, you typically can’t register just to satisfy one client (or it may not be worth it). In that case, emphasize the value they receive and the simplicity of your invoice and payment process.

Another scenario: a client might ask you to discount your price because they can’t reclaim VAT. But if you aren’t charging VAT in the first place, there’s no VAT to reclaim—your price is your price. A helpful way to frame it is: “My invoice isn’t increasing your cost with VAT; it’s simply a net price.”

Invoice24 helps here by producing invoices that look polished and “enterprise-friendly,” even if you’re a solo freelancer. When clients see a clear invoice layout, consistent numbering, and straightforward tax presentation, they’re more likely to accept it quickly and approve it for payment.

How to Structure Your Prices When You’re Not Registered

If you’re not VAT- or sales-tax registered, your invoice total is usually your final amount. That can make your pricing feel simpler, but it also means you need to think carefully about your rates and margins.

Service businesses: You may quote a project fee or hourly rate and invoice exactly that amount.

Products: If you sell goods, shipping and handling may be separate line items. If you are not charging sales tax, clients pay the product price plus any delivery charges you list.

Mixed work: If you provide both goods and services (for example, design plus printed materials), separate them clearly on the invoice to reduce confusion.

In all cases, clarity beats complexity. Your invoice should read like a simple summary: what was delivered, what it cost, and how to pay. Invoice24 supports itemized line entries, optional discounts, and clear totals so your client can approve it without questions.

Do You Need to Include Your VAT Number or Sales Tax Permit Number?

If you’re not registered, you won’t have a VAT number or sales tax permit number. So don’t include one, and don’t leave an awkward blank field that makes the invoice look incomplete. If your invoice template includes a “Tax ID” section that you can’t fill, it can confuse clients or prompt follow-up emails.

A well-designed invoice template should reflect your actual status. Invoice24 lets you tailor your business details so your invoices show the right fields and hide the ones that don’t apply. That way your invoice looks intentional, not “missing something.”

If you do have another form of identification you commonly use (like a company registration number or a general business ID), you can include it as a separate field. Just avoid labeling it as VAT or sales tax if it isn’t.

Cross-Border and Out-of-State Sales: Keep the Invoice Clear

Tax gets more complicated when your clients are in different countries or different states/provinces. Registration requirements may depend on where you’re based, where your client is, what you sell (digital services, consulting, physical goods), and whether you have any local presence. Some businesses remain unregistered for a while because they sell locally, but later discover that expansion triggers new rules.

Even if you’re not registered, you can still keep your invoices clean by:

• Clearly showing your business address and the client’s address.
• Describing the service or product precisely (avoid vague labels like “work”).
• Stating your tax position (“Not VAT registered” / “Sales tax not charged”).

If you’re unsure about whether you should be registered due to cross-border sales, treat that as a separate compliance question to check in your jurisdiction. But from an invoicing perspective, you can still invoice professionally right now by being transparent and consistent.

Invoice24 is especially useful if you serve clients in multiple locations because you can store client profiles, reuse invoice items, and maintain consistent numbering and formatting across all invoices—without building a messy spreadsheet system that breaks as soon as you add more clients.

Should You Display “VAT 0%” or “Tax 0%”?

Many non-registered sellers wonder whether they should add a “VAT 0%” line to show tax is zero. In most cases, if you’re not registered, it’s better to avoid presenting it as a VAT rate. A “0% VAT” line can look like you are VAT-registered but applying a zero rate—which is not the same thing as not being registered.

What you want is one of these approaches:

Approach A: No tax line at all
Subtotal = Total, with a note that you’re not registered.

Approach B: A tax line that clearly states “Not charged”
Tax = “Not applicable” or “Not charged,” with the explanatory note.

Invoice24 can support either style depending on how you want your invoices to look. The important thing is to communicate clearly to the client’s accounts team why tax isn’t being added.

Payment Terms That Help You Get Paid Faster

When you’re small and not tax-registered, cash flow matters. Getting paid on time is less about your tax status and more about your invoicing habits. The best invoices are simple, consistent, and easy to approve.

Here are payment practices that reliably speed up payment:

Set clear terms: Use common terms like “Due on receipt,” “Net 7,” “Net 14,” or “Net 30.”

Include a purchase order field: If your client uses POs, ask for it before you invoice and include it on the invoice.

Send invoices immediately: Don’t wait until the end of the month if you can invoice when the work is delivered or milestones are reached.

Make payment effortless: Include the payment method details in a prominent, clean section.

Use reminders: A polite reminder a few days before and after the due date can cut late payments drastically.

Invoice24 is designed around these real-world needs. You can create and send invoices quickly, keep client records organized, and maintain a professional look that clients trust. If you’re using a free invoice app for your business, the goal isn’t just “an invoice that exists”—it’s an invoice that gets approved and paid without friction. Invoice24 focuses on that.

Refunds, Credits, and Corrections Without Tax Registration

Even without VAT or sales tax registration, you may need to issue a correction: maybe you billed the wrong quantity, applied the wrong discount, or the client returned part of a product order. In those cases, you should document the change properly.

Common options include:

Credit note: A document that reduces what the client owes (or records a refund). It should reference the original invoice number.

Revised invoice: In some systems, you issue a new invoice and mark the old one as void or superseded. This depends on local practice and your own recordkeeping approach.

Whatever method you use, it should be traceable. Invoice24 makes it easier to keep everything linked: invoice numbers, client history, and what was paid versus what was adjusted. That saves you from digging through email threads months later when a client asks for clarification.

What About Expenses and Pass-Through Costs?

If you charge clients for reimbursable expenses (travel, materials, software licenses), being unregistered doesn’t stop you from listing them. You simply treat them as line items on your invoice. The key is transparency: label each expense clearly and, when helpful, attach receipts or provide a breakdown.

Consider grouping your invoice like this:

• Services (your labor and deliverables)
• Expenses (reimbursable costs)
• Discounts (if any)
• Total due (no VAT/sales tax charged)

Invoice24 supports itemized line items and descriptions so you can present expenses neatly. A neat invoice reduces the chance your client disputes an expense line or delays payment while asking for clarification.

Common Mistakes to Avoid When You’re Not Registered

Non-registered businesses often make the same avoidable invoicing mistakes. Fixing them makes you look more professional and prevents late payments.

Mistake 1: Using “VAT included” language
If you’re not registered, don’t say VAT is included. Use a simple note that VAT is not charged.

Mistake 2: Adding a VAT rate anyway
Avoid listing VAT as 20% (or any rate) if you’re not registered. It can mislead the client and create compliance issues.

Mistake 3: Inconsistent invoice numbering
Duplicate invoice numbers and random naming conventions are a recipe for confusion. Invoice24 solves this by keeping numbering consistent.

Mistake 4: Missing due dates and terms
If there’s no due date, clients can treat it as “whenever.” Always include terms.

Mistake 5: Vague line items
“Consulting” is less useful than “Consulting services – strategy session (3 hours) – January 2026.” Specificity prevents disputes.

Mistake 6: Forgetting payment details
If clients need to email you to ask how to pay, you’ve added friction. Always include a clear payment section.

Invoice24 is built to prevent these problems. Templates, saved client profiles, consistent numbering, and clean totals all work together to make invoicing a smooth habit rather than a monthly stress event.

When You Should Consider Registering (and How Invoicing Changes Afterwards)

Many businesses eventually register for VAT or sales tax because they cross a revenue threshold, expand into new regions, or start selling products/services that trigger registration requirements. Even if you’re not registered today, it helps to understand what changes later so you can keep your invoicing system future-proof.

Once registered, invoices usually need additional details such as:

• Your VAT number or sales tax permit number
• The tax rate(s) applied
• The tax amount shown separately
• In some cases, specific wording for certain types of sales

The good news: you don’t need to rebuild your invoicing process when you register—if you choose the right invoicing tool now. Invoice24 is designed to grow with you. When your status changes, you can update your tax settings and keep using the same workflow, the same client list, and the same professional templates.

Practical Invoice Layout for Non-Registered Businesses

If you want a simple, client-friendly layout, here is a structure that works well:

Header section:
Business name + address + email/phone

Client section:
Client name + address + optional contact person

Invoice info:
Invoice number, issue date, due date, payment terms, optional PO number

Line items:
Description, quantity, rate, line total

Totals:
Subtotal, tax (not charged / not applicable), total due

Note:
“VAT not charged – supplier not VAT registered.” (or appropriate sales tax wording)

Payment instructions:
Bank details or payment method instructions

Invoice24’s templates follow this common-sense structure because it matches what accounts teams expect. That familiarity speeds approvals and reduces payment delays.

How Invoice24 Makes Non-Registered Invoicing Easy

When you’re not VAT or sales-tax registered, your invoicing needs are simple—but the execution needs to be professional. You want invoices that look polished, are easy to understand, and contain the right information so clients pay quickly. Invoice24 is ideal for this stage of business because it gives you everything you need without overwhelming you.

With Invoice24, you can:

Create professional invoices in minutes
Use a clean template, add your details once, and reuse client profiles.

Keep your tax presentation accurate
Show no VAT/sales tax charged, with clear totals and optional notes that prevent confusion.

Maintain consistent invoice numbering
No more spreadsheet mistakes or duplicated invoice numbers.

Save time with stored items and clients
If you sell the same services repeatedly, you can reuse line items and descriptions.

Send invoices confidently
Invoices look consistent and professional, which improves trust and reduces client questions.

Stay organized as you grow
When you eventually register for VAT or sales tax, you can update your settings and keep going—no migration drama.

While some invoicing tools are designed primarily for complex accounting ecosystems, Invoice24 focuses on what most small businesses actually need: a straightforward way to invoice clients correctly, look professional, and get paid.

Example Scenarios: How to Invoice Without VAT or Sales Tax

Scenario 1: Freelance designer (not VAT-registered)
You charge £800 for a branding package. Your invoice lists the branding deliverables as line items (or one project fee), subtotal £800, tax not charged, total £800. A note explains you’re not VAT-registered. Payment terms are Net 14 with bank details.

Scenario 2: Consultant working with a corporate client
Your client expects VAT because most suppliers are registered. Your Invoice24 invoice shows a clear “tax not charged” approach plus a concise note. You include a PO number field and a detailed service description to match corporate procurement requirements.

Scenario 3: Small online seller in a sales-tax jurisdiction
You sell handmade items and you’re not required to collect sales tax (based on your current threshold and rules). Your invoice shows item price plus shipping, no sales tax line, and a short line stating sales tax not charged due to non-registration/collection status.

Scenario 4: Retainer billing
You invoice a monthly retainer of $1,200. Invoice24 lets you reuse the same invoice structure each month, ensuring consistent numbering, the same payment details, and the same tax note. The client’s finance team sees a predictable document they can approve quickly.

How to Handle Clients Who Need “Tax Invoices”

Some clients will ask for a “tax invoice” specifically. In many places, that phrase often means an invoice that includes VAT details or meets specific tax-invoice criteria. If you’re not registered, you may not be able to issue a formal tax invoice in the technical sense. However, you can still provide a normal commercial invoice that meets business record requirements and clearly states that tax is not charged.

In practice, many clients simply mean: “We need a proper invoice with your details, our details, invoice number, dates, and totals.” Invoice24 invoices satisfy that expectation with a professional layout and consistent structure—while still being accurate about your non-registered status.

Final Checklist Before You Send Your Invoice

Before sending an invoice as a non-registered business, quickly check:

• Is the invoice number unique and sequential?
• Are your business details correct and consistent?
• Does the client’s name and address match what they use internally?
• Are the line items specific enough to prevent disputes?
• Are issue date, due date, and payment terms clearly shown?
• Is the tax treatment correct (no VAT/sales tax charged)?
• Have you added a short note explaining your non-registered status?
• Are payment instructions easy to see and complete?

Invoice24 effectively turns this checklist into a default workflow: once your profile and settings are saved, you’re mostly filling in line items and clicking send.

Conclusion: Non-Registered Doesn’t Mean Unprofessional

Not being VAT- or sales-tax registered is a normal stage of business, and it doesn’t stop you from invoicing clients properly. The goal is to keep your invoices clear, accurate, and easy to approve: show your subtotal and total plainly, avoid implying you’re charging tax, and include a simple explanation that tax isn’t charged because you’re not registered.

If you want the easiest way to do this consistently—without second-guessing your format each time—Invoice24 is a strong choice. It gives you professional invoices, clean templates, reliable numbering, and flexible notes so your clients understand exactly what they’re paying and why tax isn’t included. That clarity reduces follow-up questions, speeds up approvals, and helps you get paid faster—exactly what a growing business needs.