VAT avoidance?

VAT avoidance?

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Client company sells and installs and designs stuff in the home.

Got a sale for 38K plus VAT normal terms are 50% upfront. (pretty much to cover my client buying it from it's own supplier). Their customer has said fine but doesn't want VAT to be added on at this stage. But (I assume) will accept the full 7.6K VAT on second invoice.

Can my client do this? Mentioned proforma invoice. I suggested invoicing for 40% plus VAT as that will appease the customer in cash flow at least.

Client wants to appease it's customer but not break the law.

Is this OK or is it no acceptable to invoice for just the net? (I can't believe I'm asking this, surely it's not allowed!!)

Replies (4)

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By User deleted
19th Dec 2014 15:38

Pro-forma invoicing ...

... will not help in this situation. As soon as payment is received a VAT invoice needs to be issued (within 30 days)

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chips_at_mattersey
By Les Howard
19th Dec 2014 16:49

Tax Point

And you will be liable to pay VAT on the amount received, irrespective of how you invoice it.

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Euan's picture
By Euan MacLennan
19th Dec 2014 17:18

All things are possible

It depends on how much the client is prepared to pay to keep the customer satisfied.  He could bill the customer just £19K in total and pay over the VAT of £3.1K included in the £19K.  If it is for the home, it doesn't sound as if the customer needs a VAT invoice.

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Replying to SteveHa:
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By HeavyMetalMike
19th Dec 2014 17:23

Thank you, all!

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