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VAT De registration

VAT De registration

We have many clients whom we have a self-billing agreement with. some clients are VAT registered. the trouble is we have to check regularly upon paying VAT if the client Is still registered for VAT. sometimes the client deregisters and we end up paying VAT when we shouldn't have.

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By Kevkava
24th Feb 2016 12:36

You need to clarify - you say you have 'many clients'; in that case surely it's you that's invoicing them (whether self billed or not). So if you're VAT registered they should be paying you VAT whatever their own status.

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24th Feb 2016 13:15

KevKava you do have the wrong end of the stick. but thanks for the reply. 2nd post is correct but I may have not entirely explained my post correctly

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24th Feb 2016 12:46

Sales

I take it Kevkava has the wrong end of the stick here ?

They're your purchases but you do the sales invoicing for the supplier ?

Yes, you need to have them confirm that they're VAT registered before you pay them the VAT. Some companies do it on a quarterly basis to cut the admin.  There's nothing to be done but agree a procedure with the supplier.

There was a query on here last week from a supplier who was complaining that a customer was asking him to sign and return an invoice before they would pay him the VAT.  It seemed a reasonable way to go about  it.

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24th Feb 2016 13:14


Correct. but is there an easier way to check online if the client is still VAT registered or have automated updates if a VAT number de-registers?

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24th Feb 2016 12:46

Just buy something from them and ask for a VAT invoice. (or look on their letterhead, if included)

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24th Feb 2016 13:20

VIES
Check with VIES on a quarterly basis.

http://ec.europa.eu/taxation_customs/vies/vatResponse.htm

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24th Feb 2016 15:06

I was hoping there would be a system out there that would notify us rather than having to enter the VAT number in the site as we currently do this and is really cumbersome long winded for over 350 clients.

 

 

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By Kevkava
24th Feb 2016 13:26

Sorry about that - blinded by the word 'client', and grabbing the wrong end of the stick (not for the first time).

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24th Feb 2016 20:38

Annual checks

It's very common for machinery dealers to self-bill for part-exchanges in the agricultural sector, they tend to write on an annual basis requesting re-confirmation of VAT status and with a disclaimer for the business owner to sign that they will notify if their status changes etc; would this be practical?

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25th Feb 2016 09:34

Credit

You can extend your credit by only paying VAT when you get confirmation on the subcontractor.

Get them to do some work.

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