Customer wants an invoice, but I'm only a hobby artist?

Ki · Joined: 16 Jul 2009 Posts: 9 Location: Queensland

I've been commissioned to do a painting for customer and she asked for an invoice (I'm guessing so she can claim the purchase for her business) however I am only a hobby artist. and I don't have an ABN. Can I still give an invoice, or not? Any info would be appreciated, Thank you!

Stefan Maguran

You can certainly give the customer an invoice - you may have to declare on the invoice that you are a hobby artist - you can print the invoice and receipt on your computer or even write one by hand.

AvG · Joined: 17 Sep 2005 Posts: 1912

When you sell to a business you need to either provide them with a tax invoice quoting your ABN, or, if you don't have an ABN you can provide an invoice without an ABN and also provide a completed 'statement by a supplier' form. Here is the link to the form on the Tax office website http://www.ato.gov.au/content/downloads/nat3346.pdf

The statement by a supplier form is the legal way to declare that you are a hobby artist.

If you don't provide the form (or an ABN) the business is required by law to withold tax from your payment to the tune of about 48.5%

lisa_m · Joined: 24 Nov 2008 Posts: 222 Location: Queensland

Bookmarked!!!

A very handy tid-bit indeed! Thanks for that!

Chrissy D · Joined: 12 Jan 2006 Posts: 1053 Location: Queensland

You can buy those invoice books from newsagents that have the customer copy and your copy. Or as suggested type and print it out.

Here is some info I have found to help (as I have to do one up too). There are some templates their with examples of how to fill it out.

http://www.ato.gov.au/businesses/content.asp?doc=/content/50913.htm

http://www.showmummythemoney.com.au/Small-business-start-up-information-invoice.htm

http://www.gststartup.gov.au/shoeboxCD/html/templates.html

Hope this helps.

Chrissy

Ki · Joined: 16 Jul 2009 Posts: 9 Location: Queensland

Great, thanks so much for your help everyone! Those links have definitely been useful.

Chrissy D · Joined: 12 Jan 2006 Posts: 1053 Location: Queensland

Another thought, I have the latest version of Microsoft Office 2007 and in the Word program when you open a new document, you can choose to use a template. Here I found some Invoice templates among other things.

If you need an example, I have done mine up and can send you my template. Just PM me.

lisa_m · Joined: 24 Nov 2008 Posts: 222 Location: Queensland

ok possible stupid question ahead

scenario -

purchase takes place

customer is given a form declaring I have no ABN because of hobby status in place of ABN invoice.

do I not have to declare this income to the government still somehow?

AvG · Joined: 17 Sep 2005 Posts: 1912

not under a certain limit lisa. I don't know the exact figure but it is a fair amount I think.
There have been other posts on this matter but the figures people gave varied a bit.... on these things I think it is always best to get advice from your accountant.

lisa_m · Joined: 24 Nov 2008 Posts: 222 Location: Queensland

awesome thanks amanda Smile