VAT charged on non-VAT Invoice

VAT charged on non-VAT Invoice

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Hi

One of my group's subsidiaries rents serviced office accomodation in London from a US-based company. They have recently opted to tax the building and, as a result, are issuing invoices including VAT.

However, the invoices are not properly addressed and do not show a VAT number. I went back to them last month after creating a pro forma invoice whith the correct details on it, but this month's invoice is still in the wrong format.

I know that I cannot recover the VAT without a proper invoice. But if the company refuses to issue a proper invoice, what is my recourse?

Replies (6)

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By qhas
21st May 2015 18:44

No VAT invoice
Don 't pay the VAT. Pay just the net charge

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By DKB-Sheffield
21st May 2015 20:53

Threaten VAT Compliance

Hi,

You could also use the old "I'll report you to the VAT Compliance Team"!

Whilst we both know such a "report" would be fairly pointless (and hence a pretty idle threat), it will probably urge them to sharpen their act and shine their shoes!

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By cthed
22nd May 2015 00:26

Simple pay the invoice but not the VAT, when they chase for the balance tell them you are happy to pay when the correct invoice is issued.

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By aescott
22nd May 2015 07:12

Thanks. Pretty much what I expected, so thanks for confirming.

Non-payment isn't really an option - we need the office more than they need us, so I'll consider the VAT compliance office route - after exhausting all other avenues.

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By jvenegas16
22nd May 2015 10:37

How do you know?

Sorry to ask this question, but how do you know that they opted to tax the building, on one hand, and that it has effectively been processed, accepted and granted by HMRC? 

Could that be the reason why they cannot produce a VAT number? It sounds that they were not VAT registered. 

What do you mean by 'the invoice is in the wrong format'?

When you say that they include VAT means that they show the VAT amount separately, but not VAT number and no wording stating that they are still awaiting for number?

What would you do if a supplier sent you a wrong invoice or an invoice with the wrong amount? Would you pay it? This case is not different from that scenario. As it stands the invoice is wrong and you are disputing the amount.

Companies supplying serviced office accommodation are not the best in administration, dealing with invoices, credit notes, charges (they always overcharge), etc. Most of their systems are automated so who cares afterwards? 

 

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By aescott
22nd May 2015 10:47

I got an e-mail from them with their VAT number, which passes the VIES test and identifies the business correctly.

I'm not at the stage of withholding payment yet - we need the accomodation more than they need the tenant.

You are correct re the admin - I'm sure that this is all that this is, but it's frustrating. The problem is that most of the other tenants are start-ups and probably aren't VAT registered or understand that they can't recover VAT on the basis of the invoices supplied.

It would be an act of extreme churlishness to report the company to HMRC or, even worse, suggest a VAT inspection of the building tenants.....

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