VAT ON PREPAID SERVICE
I just have a question regarding VAT.
My client has just been registered for Vat and the 1st return is end of Jan 2012. They operate a private hire business (minicab service). They are agents and only have to pay VAT on the commissions they earn.
They take lots of advance bookings which are paid at the time boking with credit or debit card.
I am stuck on an issue. I was told that we have to pay the VAT on the day the credit card is charged, even if the journey is carried outside the 3 months period the VAT return covers.
These all assume that we know commission we will earn if the job is carried out as it is booked. This is not always the case. The job might get cancelled or there is additional drops etc.
Questions: Can we pay the Vat only once service is carried out (for the journeys paid prepaid).
Thanks for your help in advance. Happy New Year to everyone.
- Starting up in practice - safety net 377 9
- How quickly do you turn around y/e accounts? 466 10
- Ex Client from over 3 years ago 566 7
- Opening balances Sage 50 24 1
- Flat rate vat 318 4
- RTI Annual Scheme Query 232 6
- Rental property company 176 2
- Can Excel sheets be imported into Digita Accounts Production Posting Sheets? 168 2
- PAYE coding notice - deliberate misstatement 410 12
- What password safe app does anyone recommend? 1,470 27
- Small employers paying people when sick thanks alot! 3,198 35
- Director's current account - fuel costs and expenses 400 11
- How to avoid PAYE Registeration 309 4
- Payroo Employer allowance query 283 8
- Enforcing A CCJ 407 7
- RTI 'Late Filing' & paying employees in arrears 228 1
- Reporting no P11d due when PAYE scheme closed by HMRC 5Apr2013 217 2
- Comapny valuation qualifications 166 2
- Director's tax return 429 8
- Sale of assets - availability of AIA to the purchaser 200 3
- Residential Property Purchase Above £750K 832
- Using Sage with Sofa Categories 575
- Does anyone have an unwanted ICAEW wooden plaque? 449
- Goods shipped inter EU and VAT Reporting 323
- Free Tax Legislation? 302
- Director Loan account operation 284
- Non-Resident Director - UK Tax Position? 270
- transferring simply accounting 2010 from xp to windows 7 262
- Sage 200 and Access Dimensions reviews 244
- Paye procedures for CVA 184