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Contractor requesting VAT payment, after invoice

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Hi All,

We have a contractor who sent an invoice for services supplied in November 2018. The invoice did not include VAT, and did not show any relevant VAT registration number.

We have just received a letter stating that there was an error on the original invoice and they should have been claiming VAT and requesting us to pay the VAT not included.

Now this sounds rather dodgy to me and I don’t believe we have any obligation to pay this? But, I’m not certain. Due to the age of this invoice, it also falls into last years accounting period. 

Can anyone kindly shed some light on the laws surrounding this please and give advice on how to proceed? It’s certainly nothing I have encountered before!

Many thanks in advance!

Replies (8)

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By SXGuy
20th Jul 2019 19:56

No its not dodgy. It may well be that he should have either charged vat or registered for vat. So he's subsequently sent a vat invoice after the fact.

Thanks (1)
RLI
By lionofludesch
20th Jul 2019 20:08

Sounds like he's back dated his VAT registration.

Alternatively, he's zero rated work that should've been standard rated.

Whether you're required to pay depends on the terms of the contract. If the price was for £1000 and that's what you paid, you've no obligation to pay any more.

But if it was for £1000 + VAT and you only paid £1000, you owe £200.

Either way, you can reclaim all the VAT (assuming you're fully taxable yourself), so it costs you nothing. Why wouldn't you pay him ? Especially if you're hoping to use him as a supplier in the future.

Thanks (1)
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By jcace
20th Jul 2019 21:57

You can always check VAT Registrations at http://ec.europa.eu/taxation_customs/vies/

Thanks (1)
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By paulwakefield1
21st Jul 2019 08:47

Was it just a letter or was there also a new VAT only invoice?

Thanks (1)
Replying to paulwakefield1:
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By Fyerix
21st Jul 2019 09:35

It was simply a letter requesting the payment of VAT, no new invoice was supplied.

Thanks (0)
Replying to Fyerix:
RLI
By lionofludesch
21st Jul 2019 12:59

You need a VAT invoice. Definitely.

A letter's not good enough.

Thanks (1)
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By lesley.barnes
21st Jul 2019 09:14

Ask for a vat invoice and a copy of the vat certificate. There are a number of reasons why the Vat wasn't included as others have indicated. You are under no obligation to pay the vat but if you are vat registered it won't make ant difference to you.

Thanks (1)
Replying to lesley.barnes:
Psycho
By Wilson Philips
21st Jul 2019 10:32

lesley.barnes wrote:
You are under no obligation to pay the vat

Depending on what the contract says.
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