Discussion
What you can do is show the VAT content on the invoices you are raising with the words "VAT Applied For" on the face of the invoice.
However, as you are not officially VAT registered, this will prevent any of your VAT registered customers from reclaiming the VAT shown on the invoice. In may cases, customers often will only pay the VAT Exclusive element of the invoice instead. You might want to issue a "pro-forma" invoice rather than a formal invoice for these transactions for the time being.
As soon as the VAT registration number comes through, you can then forward to them a replacement formal invoice showing the same figures but this time with the VAT number showing. This will allow the customer to pay you the VAT amount on that invoice and at the same time, allow them to reclaim the VAT content.
Regarding reclaiming, you can only start reclaiming VAT when you are VAT registered. However, you can reclaim pre-registration VAT on stock and other items which are still in use or unsold at the date the regiostration comes through. In fact, you can claim back VAT on such items going back three years so it may be worth while digging out invoices on plant and machinery, equipment etc bought in that time period.
You can reclaim Input VAT on Services received going back six months prior to registration.
However, as you are not officially VAT registered, this will prevent any of your VAT registered customers from reclaiming the VAT shown on the invoice. In may cases, customers often will only pay the VAT Exclusive element of the invoice instead. You might want to issue a "pro-forma" invoice rather than a formal invoice for these transactions for the time being.
As soon as the VAT registration number comes through, you can then forward to them a replacement formal invoice showing the same figures but this time with the VAT number showing. This will allow the customer to pay you the VAT amount on that invoice and at the same time, allow them to reclaim the VAT content.
Regarding reclaiming, you can only start reclaiming VAT when you are VAT registered. However, you can reclaim pre-registration VAT on stock and other items which are still in use or unsold at the date the regiostration comes through. In fact, you can claim back VAT on such items going back three years so it may be worth while digging out invoices on plant and machinery, equipment etc bought in that time period.
You can reclaim Input VAT on Services received going back six months prior to registration.
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