Hello,
If a company is on the flat rate scheme (accruals) and has a VAT invoice included for say £100 +vat (10% flat rate percentage). Then later once the scheme has been switched to the normal VAT accruals scheme, raises a credit note against the same invoice. How is that credit note treated in the VAT return. Does the 10% flat rate amount get deducted from the VAT return or the full 20%?
Thank you
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Replies (2)
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Are you saying that the company issued an invoice and only charged VAT at 10%? If so why?
No the invoice had 20% on top as normal, I just mention the flat rate was 10% in case that is relevant. So when I raise the credit note after switching the scheme do I get 20% VAT relief (as now on the standard scheme) or 10% of the gross credit note value as the original invoice was on the flat rate scheme?