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Stepurhan
By stepurhan
11th Jan 2017 15:09

Are you accounting for VAT on these sales? If not, why not?

Because if your tax point is after the date of registration then VAT is chargeable on that sale (subject to the sale itself not being exempt/zero-rated of course, which I am assuming doesn't apply here).

Sounds like you're trying to have your cake and eat it by claiming input VAT when you are not accounting for output VAT. As you are unlikely to be able to adjust the total price post order, your reduction in the sale price (by treating it as inclusive of VAT) would exceed any additional input reclaim if done properly.

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Replying to stepurhan:
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By uksoletrader
11th Jan 2017 15:53

stepurhan wrote:

Are you accounting for VAT on these sales? If not, why not?

Because if your tax point is after the date of registration then VAT is chargeable on that sale (subject to the sale itself not being exempt/zero-rated of course, which I am assuming doesn't apply here).

Sounds like you're trying to have your cake and eat it by claiming input VAT when you are not accounting for output VAT. As you are unlikely to be able to adjust the total price post order, your reduction in the sale price (by treating it as inclusive of VAT) would exceed any additional input reclaim if done properly.

@stepurhan, thank you for your quick response.

That makes sense, I hadn't thought of it that way. I just assumed the discrepancy was a happy side benefit of recovering pre-registration input VAT on the first return.

Apologies that my complex query had such a simple answer. VAT is quite new to me and I'm only just getting to grips with it.

Thanks again.

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Stepurhan
By stepurhan
17th Jan 2017 14:23

Please reinstate the question.

These forums are for sharing knowledge, and others might benefit from the answer to the same question. By deleting the question, you are effectively making the answer I've given you bespoke personal advice. That is an abuse of the forums.

If I knew my advice was only going to be available to you (whilst it is still here, without the context of the question it is no use to anyone else) then I would be charging you for it.

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By cheekychappy
17th Jan 2017 14:37

[***].

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Replying to cheekychappy:
By Ruddles
17th Jan 2017 14:47

Answered

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Richard Hattersley
By Richard Hattersley
17th Jan 2017 15:22

I'll close this thread since the member has deleted the question.

We ask that questions are NOT removed as the answer will be useful for other readers who may share your problem.

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