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Pre Season Invoice dated September how do you treat the VAT as not due until May 16

Pre Season Invoice dated September how do you...

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As is usual in horticulture We have an invoice from one of suppliers that does not fall due until May 2016. Usually the tax point is January but this year they have invoiced into September. Can we claim the VAT now or do we have to ask for a new invoice with a tax point that fall within six months of the due date?

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By 101Accounts
16th Oct 2015 16:01

Deferred revenue


I have no experience of horticulture, but will have a stab...

If the invoice is tax dated September, then that is the date the VAT is recognised.

The cash side of the transaction is a separate issue.

I would post the invoice to deferred revenue, and hold it in the balance sheet until May'16 when the transaction is complete, or release it as and when the invoiced service/goods are realised.

Surly the correct transaction would be to issue a purchase order to the supplier forming the contractual obligations of both parties. As the service/goods are provided, the invoice is raised so it falls in a 'correct' tax period for the transaction of said goods/services, and paid on usual 30 day terms...


As said, I don't know about horticulture practices, so I may be talking a load of wiff waff.



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