Invoices without VAT for repairs: what are the risks?

“Sometimes I ask myself whether I should give up my self-employment and pay VAT.  » It is a common and recurring thought among those advocating reform. Sometimes you stop paying freelance quota And the power compete on an equal footing against those who don’t pay VAT and keep everything they ask « clean ».

Sometimes you feel like TVA It is a tax that you pay without receiving anything in return. It also makes you more expensive than some professionals who do everything illegal and lose their jobs as a result.

You are disappointed because you’re doing it right and customers don’t value you enough I love to hire you. Because they don’t value the security and professionalism you offer them enough compared to the price that workers give them excluding VAT. Or without paying freelancers.

And you end up thinking about doing things, not declaring them … or even stopping being autonomous and doing everything in the dark. Although you know very well that this is not the solution:

Doing things allows you to buy a house, buy a car, get financing …If you only work illegally, you can choose all of this now or never … it is not sustainable in the long run.

How can you fight the intrusion?

The first one You have to ask yourself if you really want to go to this war. Or if, whatever the situation, you really have to go to this war because you have to take works. You have to go once You have 3 ways to compete with penetration:

  • Reduce your profit margin
  • Negotiate better prices when purchasing materials
  • Learn how to sell better

Let’s focus on NOT shifting your profit margin. why You MUST make money. You deserve it.

Use the trick from Mercadona, LIDL, and other supermarkets

We use the marketing formula that supermarkets have been using since the early 1980s. Note the value of « 60 euros » in the following three examples:

  • 40 € – € 60 – 80 €
  • 60 € – € 200 – € 500
  • € 10 – € 30 – 60 €
  • How do you perceive this amount in each case? You will likely see it like this:

  • 40 € – € 60 – 80 € – average price
  • 60 € – € 200 – € 500 – good price!
  • € 10 – € 30 – 60 € – Darling
  • He is Marketing strategy used in supermarkets sell what interests them most. Stick to this concept.

    60 euros is the amount of the product that your customer wants. You offer them 2 additional product options that show your potential client that the work can be the same or even cheaper than the other professional despite being invoiced with VAT. In summary, is a way to show your customers that you can be cheaper than your competition. And no matter if the quality of the materials is lower, it will work for you because this is the type of customer who wants the cheapest reform.

    STIMAT offers you the possibility of placing several options in each work item


    Increase the value that the customer perceives for you

    We give a practical example of bathroom renovation: 1881 euros for work + 2307 euros for materials.

    The burglar calculates: € 1,500 + € 2,307 + 21% (he has to calculate VAT as he cannot deduct it) = € 4,291

    You have to invoice: 1,881 euros + 2,307 euros = 2,118 + 21% = 5,067 euros or 15% more expensive.

    The goal is NOT to reduce your margin, it is increase the value you perceive for your work.

    With a professional image, even those looking for the best price can pay at least 5% more. Read the article What do a restaurant and a repair company have in common? And you will clearly understand why.

    So the winning goal is not 4,300 euros, but 4,600 euros, which is only 8% of your starting budget. That means, for example, finding toilets 20 euros cheaper. Or a crane for 5 euros cheaper. Isn’t it that complicated to see?

    You do not have to commit to negotiating higher margins with your sales partner; Do only research cheaper materials. Use them like that Options as well as the material most requested by customers and start winning the intrusion battle without making less money. That means, of course, if you want or have to enter this market.