THIS IS NOT A VAT RECIEPT

THIS IS NOT A VAT RECIEPT

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Discussion

Tannedbaldhead

Original Poster:

2,713 posts

96 months

Saturday 27th February
quotequote all
I've been purchasing equipment and materials from suppliers online an having my staff pick them up from store.
Payments have been by credit card with proof of purchase being sent by email.
Been doing this for as long as I remember.

All good.

Or rather it has been till I printed off the latest batch of "receipts" and handed them into accounts.

The proof of payments show net amount, VAT paid, gross amount, method of payment and the time and date of payment. They also give the sellers business address and VAT number. For as long as I remember these emails have been printed off handed into accounts as receipts, processed and filed accordingly. The details are recorded in our books of original entry and used to calculate the company's VAT and tax returns.

Yesterday someone noticed the words "THIS IS NOT A VAT RECIEPT" printed at the bottom of all these documents is not not accepting my "don't worry it'll be fine" reassurance.
My argument is with the information I detailed above being available it is fine to use them as receipts. "Autistic" accounts clerk is being too literal in life when he can't accept that just because the words in bold capital letter state "THIS IS NOT A VAT RECEIPT" doesn't mean you can't use it as a VAT receipt.

Can someone confirm these documents would stand up HMRC scrutiny should it ever occur or have I buggered up?



Simpo Two

74,889 posts

229 months

Saturday 27th February
quotequote all
I'm not an accountant but having been VAT registered myself I'd say that if it has VAT itemised and a VAT number it jolly well is a VAT receipt. What more does it need?

Countdown

30,240 posts

160 months

Saturday 27th February
quotequote all
Are payments made at the same time as you are ordering the goods (ie "Upfront") or are you buying on credit?

I've seen the phrase used on invoices in order to encourage prompt payment, with an official tax invoice being issued later. [This was when i worked in the Purchase Ledger Dept]. To be honest we reclaimed the VAT using these invoices and our Auditors never queried it so I assume it's fine......not sure what the strict legal position is though. As the poster above has said if it contains all the details needed for a VAT invoice then writing "This is not a VAY receipt" shouldn't negate that.

Tannedbaldhead

Original Poster:

2,713 posts

96 months

Saturday 27th February
quotequote all
Countdown said:
Are payments made at the same time as you are ordering the goods (ie "Upfront") or are you buying on credit?

Paid online in advance. Standard click and collect.

Marcellus

6,882 posts

183 months

Saturday 27th February
quotequote all
It looks to me as if for it to be a valid vat receipt which a company can use to reclaim the vat then the company name of the buying company has to be on the invoice.

I may be wrong though, but this might help; https://www.gov.uk/vat-record-keeping/vat-invoices

oakdale

1,144 posts

166 months

Saturday 27th February
quotequote all
I think these are issued because when you do click and collect, you're not committing to buy, it's more you stating an intention to buy because if you don't collect the item within the specified time, it's returned and the transaction is cancelled.

You usually have to open an account to click and collect, so in your account go to purchases to see if you can print off a vat invoice from there.

Countdown

30,240 posts

160 months

Saturday 27th February
quotequote all
Marcellus said:
It looks to me as if for it to be a valid vat receipt which a company can use to reclaim the vat then the company name of the buying company has to be on the invoice.

I may be wrong though, but this might help; https://www.gov.uk/vat-record-keeping/vat-invoices
I don't think that's right. Our expenses team reclaim VAT from petrol receipts and they don't have our name/address on them

2 sMoKiN bArReLs

26,288 posts

199 months

Saturday 27th February
quotequote all
They are not VAT receipts but cash receipts. (i.e. a proof of payment rather than a commercial invoice)

You should not reclaim VAT on these because they are effectively duplicates of a proper VAT invoice.

That's the proper answer, having said all that...........

caziques

1,985 posts

132 months

Saturday 27th February
quotequote all

In the good old days of handwritten petrol reciepts, the trick was to purchase nine pounds of petrol, and make it nineteen by adding a 1.

Simpo Two

74,889 posts

229 months

Saturday 27th February
quotequote all
Well, you could tell the accounts bod to contact every single supplier and ask them to send another receipt with your name on - or he might find it easier to bung them through as usual. If HMRC query it you've got records to show that you were the customer.

2 sMoKiN bArReLs

26,288 posts

199 months

Saturday 27th February
quotequote all
Simpo Two said:
Well, you could tell the accounts bod to contact every single supplier and ask them to send another receipt with your name on - or he might find it easier to bung them through as usual. If HMRC query it you've got records to show that you were the customer.
hehe

We went through a bit of a phase of people not getting proper VAT invoices & submitting cash paid receipts instead. We then offered to only reimburse the ex VAT amount. Amazing how suddenly people found the time to get proper VAT invoices.

2 sMoKiN bArReLs

26,288 posts

199 months

Saturday 27th February
quotequote all
caziques said:
In the good old days of handwritten petrol reciepts, the trick was to purchase nine pounds of petrol, and make it nineteen by adding a 1.
I took our auditors to the pub for lunch. I asked for a receipt at the bar "sure thing, how much do you want it making out for Steve" with both auditors standing next to me.

biggrin

Simpo Two

74,889 posts

229 months

Saturday 27th February
quotequote all
2 sMoKiN bArReLs said:
I took our auditors to the pub for lunch. I asked for a receipt at the bar "sure thing, how much do you want it making out for Steve" with both auditors standing next to me.

biggrin
'What do you say chaps, £300 and split it three ways?'

Evoluzione

5,691 posts

207 months

Saturday 27th February
quotequote all
Have they got a VAT No. or not? It's easily checked so it's either yes or no from there.

Eric Mc

114,638 posts

229 months

Sunday 28th February
quotequote all
Sounds like they have supplied a Proforma Invoice. A Pro Forma Invoice is not a valid VAT invoice and CANNOT be used by the recipient to reclaim the Input VAT shown on it. They MUST wait until they receive a proper invoice.

2 sMoKiN bArReLs

26,288 posts

199 months

Sunday 28th February
quotequote all
Evoluzione said:
Have they got a VAT No. or not? It's easily checked so it's either yes or no from there.
It really isn’t. Pro forma invoices or cash receipts may carry a vat number but not be used to reclaim the vat.

The clue is in the printing. If it says it’s not a vat receipt, well, it’s not a vat receipt. biggrin

alfabeat

515 posts

76 months

Sunday 28th February
quotequote all
And what would happen in the event of a VAT inspection? Wrap on the knuckles and told to get the proper VAT invoices in future or having to repay the VAT claimed?

I have the same issue here, always struggle to get VAT invoices when buying things on line. Such a hassle, and invariably I don't bother chasing them up.


2 sMoKiN bArReLs

26,288 posts

199 months

Sunday 28th February
quotequote all
alfabeat said:
And what would happen in the event of a VAT inspection? Wrap on the knuckles and told to get the proper VAT invoices in future or having to repay the VAT claimed?

I have the same issue here, always struggle to get VAT invoices when buying things on line. Such a hassle, and invariably I don't bother chasing them up.
Yep, it’s a balance.

Evoluzione

5,691 posts

207 months

Sunday 28th February
quotequote all
2 sMoKiN bArReLs said:
Evoluzione said:
Have they got a VAT No. or not? It's easily checked so it's either yes or no from there.
It really isn’t. Pro forma invoices or cash receipts may carry a vat number but not be used to reclaim the vat.

The clue is in the printing. If it says it’s not a vat receipt, well, it’s not a vat receipt. biggrin
It really is, sorry.

The OP is asking the wrong people. He should be asking whoever it is sending him these receipts, a chartered accountant and HMRC.

2 sMoKiN bArReLs

26,288 posts

199 months

Sunday 28th February
quotequote all
Evoluzione said:
2 sMoKiN bArReLs said:
Evoluzione said:
Have they got a VAT No. or not? It's easily checked so it's either yes or no from there.
It really isn’t. Pro forma invoices or cash receipts may carry a vat number but not be used to reclaim the vat.

The clue is in the printing. If it says it’s not a vat receipt, well, it’s not a vat receipt. biggrin
It really is, sorry.

The OP is asking the wrong people. He should be asking whoever it is sending him these receipts, a chartered accountant and HMRC.
Eric and I have 100 years accountancy experience between us, so OP is getting decent advice for free. smile