Pro forma invoice date different to VAT invoice date

[UKSBD]

I generally date my VAT invoices on date product is delivered.

I recently had someone pay a Pro Forma invoice which was dated 28th June on the same day.
Product was delivered a week later on 4th July and I dated the VAT invoice the same (4th July)

Is this the correct date for the VAT invoice even though it is a different VAT quarter to the Pro Forma invoice?

 

[lesvatadvice]

The date of a Pro Forma invoice is irrelevant for VAT.
The Tax Point is the payment date, if that preceded the invoice date and the delivery date. HMRC Notice 700, chapter 14 explains this further.

 

[lesliedocherty]

makes no difference at all

 

[UKSBD]

The date of a Pro Forma invoice is irrelevant for VAT.
The Tax Point is the payment date, if that preceded the invoice date and the delivery date. HMRC Notice 700, chapter 14 explains this further.

As I issued the Vat invoice within 14 days of receiving payment I assume that means the later date is still OK and it comes in the next VAT quarter?

 

[lesvatadvice]

No. the 14-day rule only applies when you issue a VAT invoice within 14 days of the basic tax point. Any prior receipt of payment creates the actual tax point.

 

[UKSBD]

Thanks, so the date they pay the Pro forma is the important date?
1st time I have had it spread across 2 quarters so glad I checked.

 

[UKSBD]

Going back to this question.

I have just had another order where they paid by pro forma invoice.

This time I sent them a pro forma in August but received a cheque this morning.
Do I date the invoice the day I receive the cheque, the day I pay it in or the day it clears in my account

Also, if I received a cheque on say the 28th to 31st of a month could I delay paying it in to my account until 1st of the following month and then date the invoice 1st of the following month?

 

[lesvatadvice]

2. the date of receipt is the date of receipt, not the date you bank the cheque.
1. the invoice needs to show the tax point date; and the date of issue. The tax point is the date the supply is deemed to take place (Notice 700, chapters 14 & 15 explain). The date of the invoice is the date you issue it to the customer.

 

[UKSBD]

2. the date of receipt is the date of receipt, not the date you bank the cheque.
1. the invoice needs to show the tax point date; and the date of issue. The tax point is the date the supply is deemed to take place (Notice 700, chapters 14 & 15 explain). The date of the invoice is the date you issue it to the customer.

Yes, but it says "tax point for the amount you invoice or receive is the date you issue the invoice or receive the payment"

What is definition of receiving payment though, the day you open the envelope with the cheque in it or the date you cash the cheque?

 

[lesvatadvice]

If you receive payment (envelope arrives) before the invoice is issued, the tax point is the date of receipt of payment.

 

[UKSBD]

If you receive payment (envelope arrives) before the invoice is issued, the tax point is the date of receipt of payment.

Yes I am aware of that but in the case of a cheque is the definition of "receipt of payment" the date you 1st see the cheque or the date the payment is received in your account?

 

[UKSBD]

I've just found this

"A payment via cheque is not a "payment" until the cheque was cashed and clears the banks."

source: https://en.wikipedia.org/wiki/Payment

That is in USA is it the same in UK, or is that just nonsense?

edit: it also goes on to say "A payment by check is normally deemed to occur when the check is delivered, as long as the check is honored on presentation by the payee"

Is there anywhere that clarifies this in the UK?

 

[lesvatadvice]

HMRC guidance, Notice 731, para 4.4 is relevant. Whilst this is only guidance, it has been upheld at Tribunal. That will overrule wikipedia in UK Courts.