Invoice-tax point date?

[Dave_ST220]

I should fire this to our accountant but this place is full of knowledge so I should get the answer! Do invoices need to have a tax point date if the invoice date differs from the actual order date? eg, order placed on the 1st but not invoiced until say the 5th? I'm thinking more for instances when the VAT rate changes, not a regular thing I know but still good to cover. Cheers

[Dave_ST220]

Thanks Eric. Yes these are VAT invoices, so even though someone may have ordered & paid in the old VAT rate period we are OK that the invoice date is when the new VAT rate would be in effect? Or does the fact they have paid require a seperate date "tax point"?

[Dave_ST220]

The customer may or may not be VAT registered, we sell online to anyone.

[Dave_ST220]

We have no way of finding out I'm afraid. Do we need to do anything?

[Dave_ST220]

Eric Mc said:

Why is this an issue with your customers? It isn't, I'm covering myself

Do you quote your prices VAT exclusive or VAT inclusive? both

Did you raise your sale prices after the VAT change? no

If you quote VAT inclusive and someone contracted to buy something from you at the VAT inclusive price you quoted before the VAT rate hike and they ordered BEFORE the VAT rate change - AND you didn't make any comment in your advertsing that prices would be rising after the VAT rate change, then I think you are obliged to supply the goods at the original pre VAT increase price. Obviously, you will still will have to pay the VAT to HMRC at the new higher rate, which of course means that you will be left with a lower amount to take as the actual VAT exclusive sale value for yourself.

Are you an on-line reatil outlet? yes

Do you normally issue specific VAT invoices to customers? yes, all customers get a VAT invoice

How do you handle exports?we only sell in the UK

I'm think I'm confusing things here! This is the scenario :-

Our site shows an item at £10 + VAT so currently £12 inclusive, customer orders & pays that amount. We don't invoice them as we are closed until Monday. In the time between them ordering & paying the VAT rate changes to 25%. We will send them an invoice that shows the VAT rate at 20% BUT the date of this invoive will fall on the day where the VAT rate is in fact 25%.

[Dave_ST220]

OK, so my worry over the invoice date is without substance by the sounds of it?