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Zissou10
26th March 2010, 10:59
Hello

Thought I'd give this place a go, as the 0845 010 9000 number always claim "they're too busy to take my call" - idiots.

Anyway, the question is, should I declare output VAT on an invoice that is received within the period of registration, but was raised before (and did not contain VAT).

Example:

Register from 01/04/10, joining the FR at the same time.

On 15/04/10 a payment of £15,000 for an invoice which was raised on 20/03/10 and has no VAT is received.

Do I apply my % to the £15,000? I always thought not, but a colleague raised the point that you apply the rate to all your sales banked from the date you join the scheme, regardless whether they contain VAT or not.

Their example would be:-

You register retrospectively on 15/06/10, effective from 01/04/10. You then invoice your customers between 01/04/10 and 15/06/10 for the VAT content. Now the payments you've received to date were net of VAT (as you weren't registered at that point in time), however you apply your FR % to them and again when you receive payment for the VAT element.

Sorry if I've waffled on too much!

Cheers in advance!

David Griffiths
26th March 2010, 11:13
The supply was made before the date of registration for VAT so you do not include it in your taxable turnover.

VAT is charged on supplies made on or after the date of registration, not on cash received for earlier transactions

elainec100@cheapaccounting
26th March 2010, 12:00
As David said invoice date of 20/03 if before date of vat reg.

Zissou10
26th March 2010, 12:23
So am good to not pay the VAT? It's an approach I would have taken, but as I said a colleague (well, two actually) through that into doubt!

elainec100@cheapaccounting
26th March 2010, 12:33
a colleague (well, two actually) through that into doubt!

Are they accountants :eek::eek::p:D:D:D

Zissou10
26th March 2010, 14:00
We all are! But they don't deal with the all ins and outs of flat rate VAT ;)

elainec100@cheapaccounting
26th March 2010, 14:10
We all are! But they don't deal with the all ins and outs of flat rate VAT ;)

what - you are kidding! :p

David Griffiths
26th March 2010, 14:20
The flat rate has no bearing on the matter. At all.