Another VAT balls ache question
Another VAT balls ache question
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Discussion

Chassis 33

Original Poster:

6,194 posts

313 months

Friday 28th November 2008
quotequote all
Hopefully a quickie...I'm sending in an invoice today that won't be paid until mid-December.

My understanding is that I can still invoice @ 17.5% until Monday, could my customer turn round in a couple of weeks time and say we're only paying at 15% seeing as its now **th December? As I see it the invoice is issued (for works already completed) before the 1st December deadline, and is valued at 17.5% VAT regardless of when the customer chooses to pay it.

Regards
Iain

ginettag27

7,157 posts

300 months

Friday 28th November 2008
quotequote all
Why not issue it at 15%?

Chassis 33

Original Poster:

6,194 posts

313 months

Friday 28th November 2008
quotequote all
Ah, that brings me on to another point...what happens with flat rate VAT now?

Regards
Iain

plasticpig

12,932 posts

256 months

Friday 28th November 2008
quotequote all
No they cant. You are invoicing in Novemeber for goods/services supplied in November. The VAT rate is 17.5%. No arguments.

Your Flat Rate percentage will have changed. The new rates are here

Edited by plasticpig on Friday 28th November 13:46

ginettag27

7,157 posts

300 months

Friday 28th November 2008
quotequote all
There's a reduction for that too, already discussed here..

Think you'll have to ask your accountant or check HMRC's website (good luck!! It's in there somewhere, but
who knows!!! wink

"However, the Flat Rate Scheme percentages are changing to reflect the new rate of VAT. If you are on the Flat Rate Scheme please refer to the additional information on the HMRC website (see below). You will need to use the new rates for your sector from 1 December 2008."

It could be here : http://www.hmrc.gov.uk/vat/account-flat.htm

or maybe here : http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf

HTH

Chassis 33

Original Poster:

6,194 posts

313 months

Friday 28th November 2008
quotequote all
How come I couldn't find that on the HMRC site.
frown
Regards
Iain

ginettag27

7,157 posts

300 months

Friday 28th November 2008
quotequote all
plasticpig said:
No they cant. You are invoicing in Novemeber for goods/services supplied in November. The VAT rate is 17.5%. No arguments.

Your Flat Rate percentage will have changed. The new rates are here

Edited by plasticpig on Friday 28th November 13:46
VAT applies at the point of sale, or Tax Point.. If it's prior to Dec 1st, midnight, then the 17.5% rate applies..

Therefore what is the Tax Point on the invoice?

plasticpig

12,932 posts

256 months

Friday 28th November 2008
quotequote all
ginettag27 said:
plasticpig said:
No they cant. You are invoicing in Novemeber for goods/services supplied in November. The VAT rate is 17.5%. No arguments.

Your Flat Rate percentage will have changed. The new rates are here

Edited by plasticpig on Friday 28th November 13:46
VAT applies at the point of sale, or Tax Point.. If it's prior to Dec 1st, midnight, then the 17.5% rate applies..

Therefore what is the Tax Point on the invoice?
The tax point is when goods/services are delivered not the point of sale. The tax Point can be altered to the date of the invoice if this is within 14 days of the goods/service being delivered. Unless of course the OP is invoicing for continous services (which I suspect he might be) then the tax point is the date of the invoice.

ginettag27

7,157 posts

300 months

Friday 28th November 2008
quotequote all
I don't know, that's why I asked!

From HMRC :


"
Basic tax points for goods and services
Basic tax points - goods

The basic tax point for goods that are sold otherwise supplied is generally the date when:

* the seller sends the goods to the customer
* the customer collects the goods from the seller
* the goods become available for the customer to use - for example, if the seller's building something on the customer's premises

Basic tax points - services

The basic tax point for services that are provided is generally the date when:

* the service is carried out
* all the work - except invoicing - is finished

If a service is provided on an ongoing basis - for example a regular cleaning service - a tax point arises each time the service provider issues an invoice or receives a payment - whichever happens first.

If payments are due at regular intervals - perhaps by direct debit - for a service you provide, you can issue a VAT invoice at the start of any period of up to a year as long as there's more than one payment due in the period. This one invoice can cover all the payments due in the period.

If you do this, you should include the following information about each payment on the invoice:

* the amount excluding VAT
* the date when each payment is due
* the rate of VAT that applies
* the amount of VAT that is payable

If you decide to issue an invoice at the start of a period, you don't have to account for VAT on any payment until either the date when the payment is due or the date you receive it - whichever happens first.

Similarly, if you buy services on an ongoing basis, you must not claim back the VAT shown on the invoice until the date when the payment is due or the date you make a payment - whichever comes first.
"

ETA : above was from here : http://www.hmrc.gov.uk/vat/charge-transactions.htm


Edited by ginettag27 on Friday 28th November 14:26