VAT Registration

VAT Registration

Didn't find your answer?

Client has registered for VAT on 1st April but started work as an IT consultant using his new company in Feb and Feb/March invoices are dated 30th April.

I just realised that he should have charged VAT on these Feb/MArch invoices as VAT is due on early of date of invoice/payment not when the supply is made even though it is prior to the date of registration.  It is a continuous supply of IT services.

I assume he will have to raise a VAT only invoice for the period Feb and March but invoices that were dated 30th April.

Thanks

Replies (5)

Please login or register to join the discussion.

avatar
By taxhound
11th Oct 2013 18:05

I agree

The net amount which he has already received should have been brought into the vat return when it was received, and 20/120 of this amount would have been due to HMRC even though VAT was not detailed on the invoice.  Then when he receives the vat on the vat only invoice, 20/120 of this should go on the next vat return.

Thanks (0)
avatar
By carnmores
11th Oct 2013 18:50

could he not re issue the invoice

for feb & march with the correct invoice date before registration 

Thanks (0)
avatar
By shaun king
11th Oct 2013 20:01

how??

How can the correct invoice date be before the EDR. It is when it was raised on April 30 2013 and how would the purchaser treat these "new" invoices?

Thanks (0)
avatar
By Jim100
11th Oct 2013 22:54

invoices raised late

Actually it was done through their client self billing software. My client had delayed inputting his time in their system so Feb/March invoices were raised on 30th April (after the EDR) and paid. Ideally the date of these invoices should have been 28th February and 31st March respectively.

I only realised now that these invoices should have been raised with VAT.

Secondly the April VAT return is filed and the second VAT Return due 31st August is late. 

Now if we raised the VAT only invoice now it will go in the third VAT return. 

Should we amend the 1st VAT Return to include the VAT amount or just pass it in the next VAT Return (Aug - Oct)

 

 

Thanks (0)
avatar
By taxhound
12th Oct 2013 19:06

correct in the next available vat return

assuming the error is less than £10,000

Thanks (0)