VAT Registration - Supplies > Reg Limit

VAT Registration - Supplies > Reg Limit

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I have exceeded the VAT Registration Limit and am a little bit late with my VAT 1 form.

Do I have to just work out 7/47ths of sales between date I should have registered and actual reg date & include on first VAT Return?

I assume this will be obvious from the form VAT 1. What do customs do? Do they tell you to do as I stated above?

When registering because turnover has exceeded limit am I right in assuming that qu. 13 is not applicable (just for new businesses?).

Andrew

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By theaardvark
06th Dec 2004 11:28

Yes.
If you are late registering for VAT you must complete the VAT 1 and answer question 18 with the date on which your turnover exceeded the threshold. You will then be registered from the 1st of the second month after that date.

i.e. If you exceeded the threshold on 21 June 2004 you will be registered from 1 August.

Q13 will still apply. If you cannot remember exactly when you started trading just put an approximate date in.

When your first VAT return arrives it will cover the period from the date of registration and you must account for VAT on all taxable income received during that period.

Whether you account for VAT at 7/47s of you income or 17.5% will depend upon your agreements with your customers and / or whether your customers can recover VAT.

If you have an agreement with your customers that explicitly states that any price charged is exclusive of VAT then you are legally entitled to charge the additional VAT on top. This would be calculated at 17.5% of the price already charged and invoiced to your customers.

Whether you would wish to do this is a customer relations issue and may depend upon whether your customers can recover VAT.

If any price as quoted inclusive of VAT (and if no reference is made to VAT it is legally deemed to be inclusive of VAT) then you have no legal entitlement to charge the extra VAT. However your customers may allow you to do so regardless, especially if they can recover it.

Any income on which you are not charging the VAT on to your customer, VAT should be calculated at 7/47.

Hope the helps.

Paul Taylor
VATease - VAT Experts

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