Hi, first time poster feeling overwhelmed. I've recently started a new group role and have opened a can of worms; the group has just completed a voluntary retospective VAT registration going back 6 years (exempt final service but Google reverse charge exceeded reg threshold 6 years ago - although this was not a identified as an issue until now). Our VAT advisers say this means inter-group recharges for shared office costs over the period are, frustratingly, attracting retrospective VAT. As our final service is exempt from VAT we cannot recover it from HMRC - so it's a P&L hit. Inter-co invoices were issued and paid over the period. The recharge was used rather than get the overhead (e.g. rent, utilities, IT support) suppliers to invoice each company seperately as it was not seen as an issue. The figures were a broad brush nod to the management accounts that some overheads are being shared. The 5 trading companies are managed by one board of directors and are part of a group for corporation tax purposes. My question is, could we issue credit notes for the inter-company recharge invoices to avoid the VAT leakage - particularly in the current financial year which ends in June20? My boss says the VAT advisers have said we can not as the tax point was set by invoices being paid - I feel this may be wrong but was hoping some experts on here could provide some insight before I push it further? Thanks for reading, any help would be very much appreciated.