In this contribution, the formability of sheet metal cut edges is investigated using a damage model. Classical forming limit diagrams are known not to apply properly to the cut edges. However, with mild steels the sheet edges usually behave better than the Forming Limit Diagram predictions, so this phenomenon has not been given sufficient attention. In contrast, for Advanced High Strength Steels the cut edges exhibit reduced formability as compared to the plain sheet; this effect is very sensitive to the quality of the cutting process. The current investigation is aimed to evaluate the ability of available damage models to predict this effect on sample applications. The Gurson-Tvergaard-Needleman model is used and the material parameters for a Dual Phase steel are considered [1]. The effect of the cutting process is described by means of initial fields of equivalent plastic strain and porosity. The geometrical distribution and typical values for these two initial fields are devised based on literature. Numerical simulations of flat notched tensile tests are used within the FE code Abaqus/Explicit to illustrate the impact of the initial fields on the moment and the location of the failure initiation. The influence of the mesh size in the cutting-affected area is also investigated. The hole expansion test and a flat bending test are further simulated to investigate the influence of the cut edge.