VAT invoice when i'm not registered.

[Simon Patrick]

I am trying to find out if I am liable for anything here. During my severe naivety 3 years ago when I first started my small business. I was trying to make sure pricing was clear I put "prices include vat" next to items. I meant that that was the price and nothing else would be added. I was quickly told I can't do this as i'm not vat registered. My invoice had no vat number on and the items costs weren't split at all ie showing cost then vat to that cost.

I have had an email saying the customer has claimed all the vat and he has been told by HMRC that it isn't a vat invoice. He has requested a vat invoice with a number and the breakdown in detail. I have just replied saying i'm not vat registered and never have been.

I know I made a mistake (on about 3 invoices) but quickly stopped this but how could he have claimed vat when it was not a vat invoice?

Am I liable for anything here?

Any help would be appreciated.
regards
Simon

 

[Scalloway]

The customer should not have claimed VAT if there was no VAT number on the invoice. However VAT registered traders can issue invoices for less than £250 with no VAT sum detailed.

 

[CCSteve]

This is an interesting one and I am not 100% sure of the implications

However the VAT man is one of the most powerful men in the country
I would refund the VAT amount to the customer

It is true that VAT shouldn't have been claimed by the buyer
But I would still try and put this one to bed


Steve

 

[Anonymouse72]

There is no vat amount to refund. The customer just needs to put a correction thru on his next vat return doesn't he?

 

[StevensOnln1]

No obligation for you to issue any refund, especially as it was 3 years ago. I would only issue any refund as a goodwill gesture if you think it's likely to bring you repeat business.

 

[Scalloway]

The fact that the customer has been told by HMRC that it isn't a vat invoice suggests to me that the customer has had a VAT inspection. Hopefully the VAT inspector will just tell the customer he can't claim the VAT but you never know if the inspector will want to speak to the OP.

 

[MyAccountantOnline]

I am trying to find out if I am liable for anything here. During my severe naivety 3 years ago when I first started my small business. I was trying to make sure pricing was clear I put "prices include vat" next to items. I meant that that was the price and nothing else would be added. I was quickly told I can't do this as i'm not vat registered. My invoice had no vat number on and the items costs weren't split at all ie showing cost then vat to that cost.

I have had an email saying the customer has claimed all the vat and he has been told by HMRC that it isn't a vat invoice. He has requested a vat invoice with a number and the breakdown in detail. I have just replied saying i'm not vat registered and never have been.

I know I made a mistake (on about 3 invoices) but quickly stopped this but how could he have claimed vat when it was not a vat invoice?

Am I liable for anything here?

Any help would be appreciated.
regards
Simon

Hi Simon

It happens and whilst your customer may feel annoyed he shouldnt have recovered VAT on your invoices if they didnt have a VAT number. Lesson learnt by you and your customer.

 

[Simon Patrick]

Many thanks for your replies. FYI the customer has said to me he would make a correction through accounts. No refund required. As stated lessons learnt.