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)
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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.
could he not re issue the invoice
for feb & march with the correct invoice date before registration
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?