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When to Report Income and Expenditure

Reporting for VAT purposes when payments are delayed

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Hi all, 

I have two questions but they are basically the same..... I think. 
 

First one is- I have sent an invoice and delivered goods, the client was on payment terms which I have agreed to extend. 
I'm on monthly invoicing VAT terms so when do I declare the sales? The date of invoice, or date of payment (new payment date). 
 

Second is basically the reverse, if I have received an invoice and goods, but agreed a later repayment date than stated on the invoice, when do I report for VAT purposes? The date of delivery, or the later payment date?
 

Thanks in advance
 

 

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By Mikesch
10th May 2021 19:12

Tax point is the date on the purchase or sales invoice. When you report depends on whether you are VAT cash or accrual basis. If you are accrual, the date of the invoice will determine in which period the VAT has to be reported and paid. If you are cash basis the date of the payment will determine the VAT period. Check out the below page for more advice.
https://www.gov.uk/vat-cash-accounting-scheme

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Replying to Mikesch:
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By AMMHOWARDROARK
10th May 2021 19:22

Thanks for the response. We are on accrual basis.

I guess what I’m asking is if it is the date of the invoice, or the date on which the invoice is paid?

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Replying to AMMHOWARDROARK:
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By Wanderer
10th May 2021 19:31

Date of invoice.

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By AMMHOWARDROARK
10th May 2021 19:45

Thank-you, is this for both outbound and receivables?

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Replying to AMMHOWARDROARK:
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By Hugo Fair
10th May 2021 19:50

Yes

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