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VAT Invoice with Items with Different VAT Rates

Format of VAT Invoice with Items with Different VAT Rates

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Hi

I've had a supplier send me a 1 line invoice which is for Product A at say £200 and Product B at say £100.  Then at the bottom the UK VAT is just charged for 20% Standard Rate of Product A i.e. VAT charge in total is £40.  When querying this with the supplier they said that Product B is VAT exempt so are not charging VAT on this.

My questions are:

1) If a VAT invoice has some items with are Standard Rate and Some which are Exempt Rate, should these lines be split out with each line specifically stating the VAT rate used, or is it acceptable not to state line item  VAT rate and lump both line items in together with a combined total VAT figure at the bottom with no clear indication which line items have VAT charged?

2)Is it the Supplier or Customers responsibility to get VAT correct on Invoices?

3)Are there any good guides to this anywhere?

Many Thanks in Advance

 

 

Replies (7)

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Psycho
By Wilson Philips
09th Nov 2019 11:59

It is the supplier’s responsibility to get their paperwork right. The problem is that if it’s wrong then it could block the customer’s input claim.

However, provided that the VAT has been correctly charged, I would not expect HMRC to refuse a claim in this case.

In answer to your other part of the question, yes, items with different rates of VAT, including exempt supplies, should be separately itemised.

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By Psychic Sue
09th Nov 2019 14:03

The items should be shown separately and showing the vat rate, I would post the items into your own system separately, you could ask for a vat invoice and see if he can separate it out. In essence I would say it is not a legal vat invoice. Does he show his vat number on the invoice out of curiosity.?

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RLI
By lionofludesch
09th Nov 2019 14:09

Exempt or Zero Rated ? Not the same thing.

1. No need to have separate lines but the totals chargeable to different rates need to be shown somewhere.

2. Both - Supplier to pay the right VAT, customer to claim the right VAT.

3. Look at HMRC's advice on tax invoices.

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By Samantha20
10th Nov 2019 17:31

So are supermarkets exempt from having to indicate which of their products have VAT or not?

I know some have an asterisk against the item to show that it is vatable, but others such as M&S just have a VAT number and no indication. Does that mean that I can claim VAT on everything on the receipt?

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Replying to Samantha20:
RLI
By lionofludesch
10th Nov 2019 17:44

Of course not.

You need to ask for a VAT invoice, which they must provide on request.

Your till receipt is not necessarily a "less detailed tax invoice", though some are.

However, I've never had a VAT officer query VAT claims on supermarket till receipts, largely because the VAT content is a few quid at most.

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Replying to lionofludesch:
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By Samantha20
10th Nov 2019 18:55

lionofludesch wrote:

Of course not.

You need to ask for a VAT invoice, which they must provide on request.

Your till receipt is not necessarily a "less detailed tax invoice", though some are.

However, I've never had a VAT officer query VAT claims on supermarket till receipts, largely because the VAT content is a few quid at most.

Thanks. I've asked the employees to ask for a VAT receipt at M&S and they said that they were told that they couldn't have one.

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Replying to Samantha20:
RLI
By lionofludesch
11th Nov 2019 14:06

Samantha20 wrote:

Thanks. I've asked the employees to ask for a VAT receipt at M&S and they said that they were told that they couldn't have one.

Well, I suspect HMRC would disagree.

https://www.gov.uk/vat-record-keeping/vat-invoices

As always, it depends how far you want to take it. I'd make a complaint to HMRC, then at least I've got a record that M+S have refused to comply with the law.

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