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Proforma invoices in VT

Proforma invoices in VT

I have a small Ltd co client registered for VAT under the cash accounting scheme.  They are issuing proforma invoices at point of sale, by way of securing a 50% deposit on sale of goods.  Final vat invoice is raised at point of despatch for the full amount less payments already received.  How do I reflect the proforma and final invoice transactions in VT? 

Do I just record the deposit received as a payment on account, or can I link it to a proforma invoice transaction?

How do I ensure the VAT is reflected in the vat return at during the quarter when the final invoice is paid?

Thanks in advance for your help, I've thought about this for too long and am completely muddled now.

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By mrme89
13th Dec 2012 12:50

 

 

My understanding of a proforma invoice is that you issue the proforma for the value of the sale even if it is only to secure a 50% deposit. A proforma does not constitute a VAT invoice, a VAT invoice for the full amount must be produced.

 

You wouldn’t record a proforma invoice in VT – as it isn’t a real invoice. HMRC guidelines state that a proforma must be clearly labelled with “This is not a VAT invoice”. http://www.hmrc.gov.uk/vat/managing/charging/vat-invoices.htm#5

 

You would just record the deposit as received as payment on account.

 

P.s proformas as usually just created in excel / word.

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