I require to issue a credit note of 20% on 24 original Sales Invoices from April 2008 to July 2013 all to the same client.
Bearing in mind there were 3 Vat Rates during this period of 15%, 17.5% and currently 20%.
Can I issue one credit note to cover the above 24 Sales Invoices or not?
Related resources
Replies (3)
Please login or register to join the discussion.
Why being issued and why now?
That is a long period to be correcting in one go, and implies you have unpaid debtors from over six years ago. That is a most unusual situation. The reason for suddenly making this adjustment might have an effect on what needs to be done to effect.
I am pretty sure that the VAT rate you credit is the rate that was originally charged. So you will have to group the original invoices by VAT rate to work out what VAT to add to the credits.
This is based on my recollection of what we had to do in the past shortly after a rate change. I have never had to go back over such a long period and deal with multiple rate changes.
VAT notice 700 confirms original VAT rate to be used
The VAT guide (notice 700) states that:
The rate of VAT to be used for a credit or debit note is the one which was in force at the time of the tax point of the original supply.