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.
- Why should I retain membership? 2,656 46
- Recharge for private use of a company car 164 3
- Are there Special Rules for Agencies? 319 5
- Funding Circle Servicing Fee 123 2
- SA online - 4 hour limit 1,250 12
- Alerting clients versus walking away from clients 383 5
- Surprise visit from HMRC! 2,453 18
- Vat 240 4
- CT/CIS offset 113 2
- Statutory accounts, current company address, or one that was correct at EOY? 165 4
- Trade name 165 3
- Musician - Allowable Travel expenses 128 1
- New business - journal entries 308 20
- B2B vat in the EU 105 2
- Stamp duty on multiple property transaction 308 18
- VAT on deposits 202 2
- VAT clearance for determining the correct rate to apply 125 1
- Annual tax investigation cover fee? 401 12
- option to tax 202 1
- Share of profits from building society 100 1
- Auto enrolment excuses 777
- Feedback on accounts production software for IFRS 705
- Add T&Cs to Sales Order in Sage 385
- Social investment tax relief 204
- Digita Hosted Software 198
- Call Centre Data Costs 191
- Buying goods in US and selling them to company in US 156
- Travel costs and contractors 149
- Problems with Sage 50 Payroll v21(2015) 142
- Certificates of tax deposit 135