How to Invoice as a Freelancer When You're Not VAT/GST Registered

The Good News: It's Simpler

If you're below the VAT or GST registration threshold, your invoicing is straightforward. You don't charge tax, you don't include a registration number, and you don't need to file periodic tax returns for consumption tax.

Your invoice is simpler — and that's fine.

What to Include on an Unregistered Freelancer Invoice

You need the same core fields as any invoice, minus the tax-related elements:

Your details: Your name (and trading name if applicable), address, email, phone.

Client details: Name and address of who you're billing.

Invoice number: Sequential (INV-001, INV-002...).

Invoice date: When the invoice was issued.

Due date: Specific date — not "30 days." Calculate and write the date.

Description: What was delivered. Be specific.

Amount: The total, in your currency.

Payment details: Your bank account name, number, and sort code/routing number.

That's it. No tax line. No registration number.

Do You Need to State That You're Not Registered?

In most countries, you don't legally need to state that you're not registered on your invoice. The absence of a GST/VAT number and no tax line is sufficient.

However, some business clients — particularly those who deal mainly with registered businesses — may query the missing tax line. A brief note prevents confusion:

"This invoice does not include GST/VAT — [your business name] is not currently registered for [GST/VAT]."

One line, no explanation needed.

When Your Client Is VAT/GST Registered

Your business client cannot claim input tax credits on your invoice because you haven't charged them tax. This is occasionally a consideration — some large businesses slightly prefer registered suppliers because they can reclaim the tax.

For most freelance services, this is not a barrier. Your clients know some suppliers are unregistered, especially smaller contractors and new businesses.

Keeping Track of Your Income Threshold

Once you approach the registration threshold, you need to start monitoring your turnover. In most countries, you register prospectively — you need to register before you exceed the threshold, not after.

Watch for:

UK: £90,000 in any 12-month rolling period

Australia: A$75,000 in any 12-month period

NZ: NZ$60,000 in any 12-month period

Check your total invoiced every quarter. If you're on track to hit the threshold, consult an accountant about timing your registration.

Voluntary Registration: Is It Worth It?

You can register for GST/VAT voluntarily even below the threshold. Reasons to consider it:

Your clients are all registered businesses and you want to charge them the gross-including-tax amount (they claim it back anyway)

You have significant input tax to claim back (e.g. high equipment costs)

It signals that you're running a proper business

Reasons not to:

Additional administration (quarterly filing, keeping tax records)

Your clients are consumers who can't claim back the tax (voluntary registration makes you more expensive to them)

Most freelancers below the threshold stay unregistered until it becomes compulsory.

Example: Unregistered Freelancer Invoice

[Your Name]

[Address] | [Email] | [Phone]

INVOICE INV-2025-015

Date: 8 May 2025

Due: 22 May 2025

To: [Client Name]

[Client Address]

Website copywriting — Landing page and 3 product descriptions — $650.00

TOTAL DUE: $650.00

Payment details:

Account name: [Your name]

Account number: XXXXXXXX

Sort code: XX-XX-XX

Reference: INV-2025-015

This invoice does not include VAT — not currently VAT registered.

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Clean, complete, professional. Nothing missing, nothing confusing.