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MicrosoftInternetExplorer4

VAT question,

Considering today’s day 16/04/2011

A small company prepared their monthly accounts and have noticed that their turnover reached 76k on 15 march 2011, they have registered for the VAT , there mind be penalty applied but its not the problem. Now the threshold 2011 for registration is 73k.

Can someone tell me what going to happen to the sales of 3k on which VAT was not charged? How is it going to be recorded in VAT Return ?

Thank you very much

Vilma

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By pawncob
16th Apr 2011 22:18

??
I don't understand the question.
VAT is charged on sales AFTER registration and all turnover is recorded on the VAT return.

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Universe
By SteveOH
17th Apr 2011 11:22

The procedure that you must follow is:

At the end of every month, you look at the turnover for the previous 12 months - so in your case you look at the turnover at the end of March (the fact that it exceeded the threshold on 15th March is irrelevant)

If turnover exceeds the threshold, you must register within 30 days - in your case you must register during April. As long as you do so, there will be no penalty.

You will become registered on the 1st day of the second month after you exceeded the threshold - in your case this would be 1st May.

So you must start accounting for Vat from 1st May. The fact that during April your cumulative sales will be over £73,000 is again irrelevant. You only charge Vat once registered; which will be 1st May.

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