Can I receive payment without a business number?
Can I receive payment without a business number? – Yes, but there are limits!
Yes, the short answer is that you can absolutely receive payment for goods or services, even if you don't have a business number. This applies especially if your activity falls under what's called a "hobby business".
It's perfect for you who have just started, or who sell a few things now and then – maybe handicrafts, baked goods, or small creative projects. The key is that your activity isn't primarily driven by a desire to make money full-time, but more as a leisure activity.
What is a hobby business?
A hobby business is, as the name suggests, a business that's run as a hobby. That means it doesn't have the purpose of giving a significant profit, and often it will have a limited scope. You maybe produce and sell things in your spare time, and even though you make money, it's not your main income, and the activity isn't on a full commercial scale.
Do I need to pay tax on my hobby business?
Yes, even if you don't have a business number, you still need to pay tax on the profit you make from your hobby business. The profit must be reported as personal income on your tax return. You must not charge VAT (sales VAT), and you also cannot deduct VAT on your expenses (input VAT). However, you can deduct your expenses from the profit you need to pay tax on.
How to receive payment as a hobby business
There are several ways to receive payment when you run a hobby business without a business number. Here are the most common:
| Method | Advantages | Disadvantages | Best for |
|---|---|---|---|
| Manual Bank Transfer | Simple to set up, no fees | Requires manual check of deposits, can seem unprofessional, cumbersome for customer | Individual sales to people you know or small amounts |
| Mobile Payment (Private) | Very popular and easy for customers, widely used | Not designed for business, can have transaction limits, no automatic receipt or accounting | Sales to friends/family, spontaneous sales, very small amounts |
| Integrated payment solution (e.g., GoShup.com) | Receive card payments and mobile payments professionally, automatic handling of payments, easy setup WITHOUT business number | There's a small fee per transaction (often very low) | Regular sales, if you want to appear professional, and an easy startup without technical hassle |
For many, an integrated payment solution, like the one you find at GoShup.com, is the absolutely easiest and most professional way to get started. It makes it possible to receive payment with credit cards and mobile payments directly on your online store without needing to have a business number or enter into separate agreements with payment acquirers. This is a huge advantage for you who want to make it easy for your customers to buy your goods, but without all the administrative hassle.
When should I consider a business number?
If your hobby business grows, and you begin to make a significant profit, or if your activity gets a more commercial character (e.g., continuous sales, large marketing, or a clear intention to create a primary income), then it's time to consider registering a business number.
Advantages of a business number:
- VAT registration: You can charge VAT on your sales and deduct VAT from your purchases.
- Deduction for expenses: Better opportunities to deduct business-related expenses in tax.
- Professional appearance: Gives a more serious and credible impression to customers and partners.
- Access to business solutions: Opportunity to use business solutions like MobilePay Business and negotiate better agreements with suppliers.
Conclusion: Easy to get started, easy to scale
So it's entirely possible to receive payment without a business number, especially if you run a hobby business. For you who want to sell online in a simple and professional way, a user-friendly platform with built-in payment solution like GoShup.com is an ideal place to start. It removes all the technical and administrative hassle so you can focus on what you love to make. And when your hobby business grows, it's easy to upgrade and get a business number, so your business can continue to flourish.