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How to handle 'Rate of exchange' gain/loss on VAT

Client is invoiced in USD by UK company with VAT element defined at Rate of Exchange at VATpoint.

UK VAT Registered company invoices client USD2500 + VAT @ 20%=USD500 - specifying "VAT is calculated at £381, exchange rate 1.31..." (which is OK per 700§16.3), correct at the taxpoint.
Payment requested to be made to Californian registered LLC in USD - a curiosity that I am not sure is relevant.
However, when payment is actually made, exchange rate has moved to 1.22..., so VAT element, actually paid, is now £409, £28 more.
So how/where to deal with the £28 discrepancy?
VAT helpline says ask Invoicer to submit an amended invoice - but is that right given VAT is assessed at the taxpoint?
Given that the Tax Authority owes no duty of care, I am reluctant to rely on anything they say without checking around.

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By tom123
17th Aug 2018 14:06

Presumably the client is located in the UK so that you have to charge them vat?

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to tom123
17th Aug 2018 14:22

All parties except for the payee are UK based.

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By tom123
17th Aug 2018 14:08

As regards the currency, how have you set up the contract?

If you have agreed a price in USD, then there is nothing to change on the invoice.

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to tom123
17th Aug 2018 14:27

Hmmm
The invoice explicitly states that the $500 VAT element is £381
But the amount actually paid in respect of that $500 VAT element is £409
So, as far as the Invoice goes, yes, we agree $2500+VAT is $3000,
BUT the actual $Sterling paid for the VAT element is NOT the same as stated on the invoice - that is to say the our side will record the VAT as £409 and not £381 which they will report [I assume]

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17th Aug 2018 16:46

The correct VAT is the original amount £381.00 USD 500.

The fact that the exchange rate moved prior to payment is irrelevant for VAT. If the rate had gone the other way would you consider an amended invoice? VAT helpline is wrong IMHO.

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to Democratus
17th Aug 2018 16:53

Thanks chaps - thats all rather what I thought - and for the reason you state.

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