I'm working for a company that sends out pro forma invoices for 50% deposits, these list the items that are going to be supplied.
Once the deposit is received I will issued a VAT invoice, does this also need to list the items that will be supplied or can I just state something like
"Prepaid Deposit for order ####"
thanks
Carol
Replies (2)
Please login or register to join the discussion.
Depends I suppose.
I suppose, like many things, it depends.
Is everything you sell standard rated (presumably yes?)
Are all of your customers 'bog standad' traders - with no special circumstances (charities, foreign customers etc).
In which case, I can't see that it matters too much from a VAT perspective.
However, if I was your customer, I would probably want a bit more info to enable me to approve the invoice through our systems - but that is really from an internal management process than anything else.
Yes or no!
If your supplies are B2B, then you are obliged to issue a VAT invoice, since the receipt of the deposit creates a tax point. If your supplies are B2C, then a VAT invoice is only required if requested by the customer.