VAT invoices from the past
Discussion
A company we deal with has sent us an invoice for a not insignificant sum.
This is for VAT from over a year ago as they went VAT reg but for some reason did not add VAT to any of their invoices.
Has anyone had this before, I assume we make the payment to them directly and its for them to pay the VAT over to the tax office.
It all sounds very sus to me!
This is for VAT from over a year ago as they went VAT reg but for some reason did not add VAT to any of their invoices.
Has anyone had this before, I assume we make the payment to them directly and its for them to pay the VAT over to the tax office.
It all sounds very sus to me!
red_slr said:
A company we deal with has sent us an invoice for a not insignificant sum.
This is for VAT from over a year ago as they went VAT reg but for some reason did not add VAT to any of their invoices.
Has anyone had this before, I assume we make the payment to them directly and its for them to pay the VAT over to the tax office.
It all sounds very sus to me!
Tell them to go away, if they were VAT registered at the time and failed to charge VAT then that is their problem.This is for VAT from over a year ago as they went VAT reg but for some reason did not add VAT to any of their invoices.
Has anyone had this before, I assume we make the payment to them directly and its for them to pay the VAT over to the tax office.
It all sounds very sus to me!
"HMRC states that you should not charge VAT on any invoices you issue to clients or customer in the meantime.
Instead, businesses “should increase the amount they charge by the prevailing VAT rate (20%), explaining to clients and customers that you will reissue the invoices with the VAT-able amount once you receive your VAT number.”
Whether or not you’re in the position where you can issue invoices on this basis will depend on the relationship you have with your clients. If it is not easy to do so, you may decide to wait until you have your registration number and issue invoices a little later than usual."
https://www.companybug.com/vat-registration-wait/
red_slr said:
The invoices are from over 1 year ago?!
Exactly, so they should have invoiced you correctly had they been registered at the time.I'd point out that you will not entertain these costs as over 12 months have elapsed during which time they will have completed at least 4 VAT returns.
They have either just had a vat inspection and identified they should have been vat registered or made a mistake on your invoices.
Either way if you are able to reclaim the VAT it won't hurt you to pay it and reclaim it.
If you can't reclaim it you would need to check the terms upon which you bought from them.
Either way if you are able to reclaim the VAT it won't hurt you to pay it and reclaim it.
If you can't reclaim it you would need to check the terms upon which you bought from them.
They obviously registered late for VAT and are now charging you the VAT they should have charged you previously. As has been said, if you are a VAT registered business yourself, you will be able to reclaim any VAT you are charged by a supplier so if you pay the VAT element of the revised invoice, you will be able to reclaim that VAT from HMRC on your next VAT return.
On the other hand, if your business is NOT VAT registered, I would refuse to pay any further amounts to the company.
On the other hand, if your business is NOT VAT registered, I would refuse to pay any further amounts to the company.
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