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.
- signature required 99 6
- Is laminated flooring an improvement on carpets? 423 14
- Dispensation 91 2
- South African family trust and UK resident beneficiary 71 3
- Seting up a Direct Debit for PAYE 267 3
- Late Filing and Late Registration Penalty 192 3
- Capitalising purchased software 93 2
- Warning for freeagent accountants using payroll import 250 2
- Web sites 118 1
- Recharge for private use of a company car 553 17
- how to object to registered company name... 326 2
- Property income in different capacities 249 5
- ethical- to continue to act or not? 525 12
- CGT 471 19
- CGT 286 5
- Vat registration exception 139 2
- Do most of you still use MS Office? 483 10
- VAT rate charged by surveyor 137 1
- Charity Grant accounting 111 3
- Entrepreneurs Relief 857 46
- Auto enrolment excuses 1,211
- Feedback on accounts production software for IFRS 805
- Add T&Cs to Sales Order in Sage 503
- Digita Hosted Software 325
- Credit where credit's due....... 298
- Buying goods in US and selling them to company in US 231
- Flat rate VAT- other income calculation 176
- TheTax Donut 157
- Double taxation relief - same income, different individual 150
- Corporation Tax return - more than one trade 146