Hi all
I have received an invoice for a shop fit charge and equipment which has already been supplied to us. The invoice include the shop fit charge plus the equipment both at standard vat. It also includes a charge for interest which has no vat. The invoice states payable by monthly instalments however it does not break the charges down by instalment amount or date payable. It has been agreed with the supplier the invoice will be paid over 4 years. The credit is provided direct by the supplier ( as opposed to a financing company). My question is when should I reclaim the input vat. The invoice is quite large and would result in a vat reclaim which is larger that all the previous vat payments as the business is under 6 months old. Do I reclaim all the vat at once or should it be reclaimed based on instalments of the payments.
Many thanks in advance
Replies (5)
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Once
The tax point is the date of the invoice and it is a supply of goods which expressly contemplates title will pass.So recover the VAT in this VAT period
Cash or invoice basis?
do you prepare your VAT returns on a cash basis or on the invoice basis?
Interestingly
The seller will also have to declare and pay the VAT on invoice so will be funding this but not being paid until later (unless they are discounting their invoices, which I doubt over such a long time scale).