Change in VAT

he would have received a receipt at the time of payment. That will have a vat number on it from which the vat element can be claimed.

See

Incidentally it is hugely confusing for members of the legal profession (providing continuous services both before and after the change in rate) and as you would probably guess, the advice from the VAT office is contradictory and conflicting.

He did not receive a VAT receipt at the time of payment - it was done by phone

In message , The Todal writes

Tell me about it! In legal aid, some cases are paid on a fixed fee, and some on an hourly rate, and you can only tell which is which in some circumstances at the end of the case. Trying to work out which rate applies when and how is a nightmare

If you have paid in advance in November then VAT should be charged at 17.5% (although the VAT guidance given is very contradictory), there is no reason why they cannot issue a VAT receipt . The only reason I can think of is that there may be additional charges to the current bill and its less administrative for the company to issue one bill after the event.

When you receive the VAT receipt if you notice that its dated December and at 15% VAT then tell them they have made a mistake and request a refund for the VAT difference. If they refuse, tell them you will sue them in the small claims court and will take great pleasure in mentioning this fraud to the HMRC.

No, if the payment is £2,000 you need a proper VAT invoice to claim the input tax.

They have to issue a VAT invoice if asked. They should then issue another VAT invoice for extra charges.

There is no reason at all why there should be two separate receipts.

Yes, they have to issue a VAT receipt if asked, but not *when* asked.

IMV a tax point was created when the venue was booked and they asked for and collected the money. The appropriate VAT rate is that pertaining at that time.

If there are extras / adjustments to be paid for then the appropriate VAT rate is that pertaining as and when.

Derek

" A VAT registered supplier may be fined if they do not issue a VAT invoice when asked to do so by a VAT registered buyer."

That means they must issue one if asked , it says nothing about it being imediatly , many business me included could not do that because of the nature of the business i am in

As in being completely correct, yes.

From the link you gave :

"Generally you must issue VAT invoices within 30 days of a tax point arising. In some situations, you may be able extend the 30 day time limit."

So the rule is that you must issue a tax invoice when asked but if you are not asked you should still issue them within 30 days unless you are a retailer or fall within the special circumstances.

No the rule is you must issue a VAT invoice if asked to do so by a vat registered business, however you do not have to do so imediatly but it must be done within 30 days

There are exeptions to this rule if companies self bill

VAT quarter end 31 October 2008

VAT registered business makes payment and requests VAT invoice.on 31 October 2008

Paper VAT return for quarter ended 31 October 2008 posted 29 November

VAT invoice issued 30 November 2008

Paper VAT return for quarter ended 31 January 2009 with cheque delivered to HMRC on 28 February 2009

The difference between the rule wanting a VAT invoice issued immediately and within 30 days affects the VAT registered business' cashflow by three months.

I think that the "when" implies immediately otherwise HMRC would have used "if".

It depends wether the business uses cash accounting or accrual accounting .

Most companies do not pay until an invoice is issued and its usally 30 days nett or from the end of the month the goods were supplied , t so its highly unlikely to have any effect on the company cashflow

The only time you pay immediatly is if a pro forma invoice is issued or you are buying from a retail outlet and this is usally very small amounts and usally from petty cash .

No, that is not the rule at all.

You only need to issue a VAT invoice if you know your customer is VAT registered or if they ask you for one.

However it is determined that you are going to issue a VAT invoice, it must normally be issued within 30 days of the tax point.

I don't care what word HMRC have used, or how you think it could be interpreted.

Try looking at the actual LAW concerned, which is quite clear. The Value Added Tax Regulations 1995

---------------------------------------------------------------------- Obligation to provide a VAT invoice

1. (1) Save as otherwise provided in these Regulations, where a registered person (a) makes a taxable supply in the United Kingdom to a taxable person, or (b) makes a supply of goods or services other than an exempt supply to a person in another member State, or (c) receives a payment on account in respect of a supply he has made or intends to make from a person in another member State,

he shall provide such persons as are mentioned above with a VAT invoice.

(2) The particulars of the VAT chargeable on a supply of goods described in paragraph 7 of Schedule 4 to the Act shall be provided, on a sale by auction, by the auctioneer, and, where the sale is otherwise than by auction, by the person selling the goods, on a document containing the particulars prescribed in regulation 14(1); and such a document issued to the buyer shall be treated for the purposes of paragraph (1)(a) above as a VAT invoice provided by the person by whom the goods are deemed to be supplied in accordance with the said paragraph 7.

(3) Where a registered person provides a document to himself which purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person registered in the United Kingdom, that document may, with the approval of the Commissioners, be treated as the VAT invoice required to be provided by the supplier under paragraph (1)(a) above.

(4) Where the person who makes a supply to which regulation 93 relates gives an authenticated receipt containing the particulars required under regulation 14(1) to be specified in a VAT invoice in respect of that supply, that document shall be treated as the VAT invoice required to be provided under paragraph (1)(a) above on condition that no VAT invoice or similar document which was intended to be or could be construed as being a VAT invoice for the supply to which the receipt relates is issued.

(5) The documents specified in paragraphs (1), (2), (3) and (4) above shall be provided within 30 days of the time when the supply is treated as taking place under section 6 of the Act, or within such longer period as the Commissioners may allow in general or special directions.

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