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.
- MS Surface Pro 3 46 1
- Does anybody still use a Filofax? 555 19
- Financial statements in Word, with formulas 1,464 17
- HMRC Penalties - are they enforceable? 1,053 35
- Your fondest calculator memories 1,197 44
- R&D tax claim 248 7
- You think HMRC are inefficient? 519 9
- Company Pension Contributions 2013/14 175 7
- Profit accruing in fiduciary or representative capacity 128 2
- Gift to employee 371 12
- Tax Allowance on University Course 154 1
- Transfer of a business 126 1
- I hate HMRC's voice recognition system - The Inept Interrogator 1,135 22
- Investment property where tenant lives rent free 415 8
- VAT Cross Border Invoicing 116 2
- Sage Import Data 312 6
- Slight twist on employment related securities 245 1
- Child and Working Tax Credits and sudden increase in investment income - does this trigger a claw back? 130 2
- Best time software for small practice? 237 2
- Residents Association Corp Tax 320 13
- DTR : TIOPA 2010 Section 42 481
- CTA study material 456
- Sect 102 TMA 1970 334
- Pre incorp expenses 313
- Relief on French Tax Deposit? 269
- Anyone have clients that use Pay4Later to offer customers credit? 255
- What is the tax position if I am working overseas but via a UK agency? 207
- Gift Aid after 5 April, before 31 Jan - Tax Credits 161
- Anybody have that old ACCA Student Training Record (STR1) 142
- Taxation of partners in an LLP following new rules 135