Question 1

Does a sole trader in Ireland need to charge VAT?

Accepted Answer

Only if you are VAT-registered. You must register for VAT if your turnover from services exceeds €40,000 per year. If you are below the threshold, you cannot charge VAT - but you also cannot reclaim it on your purchases.

Question 2

Can a sole trader use their personal name on invoices in Ireland?

Accepted Answer

Yes. As a sole trader you can invoice under your own name or a trading name. If you use a trading name, include your own name as well - for example 'James Murphy trading as Murphy Plumbing'. This is not required by law but adds clarity.

Question 3

What is a sequential invoice number and why does it matter?

Accepted Answer

Revenue requires that your invoices are numbered in sequence - no gaps, no duplicates. This helps during tax audits. A simple system like INV-001, INV-002 works fine. Never reuse an invoice number or leave a gap in the sequence.

Question 4

How do I handle expenses on a sole trader invoice in Ireland?

Accepted Answer

If you are passing on expenses like materials or parking to a client, list them as separate line items on the invoice. Apply the appropriate VAT rate to each. Keep your receipts - Revenue may ask for evidence of expenses if you are audited.

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