Vat Registration and current outstanding invoices

[citycm]

I've got a meeting with an accountant this week who can probably answer this but just thought I'd check with you guys first.

We are registering for VAT in the next few weeks and I'm just wondering, when we become VAT registered, what happens with regards to invoices that are currently outstanding? Do we have to pay VAT on those even though VAT hasn't been charged? Or do we only pay VAT on invoices issued after receiving the VAT certificate?

 

[elaine@cheapaccounting]

I think this is a really useful page for your issue ..

http://www.hmrc.gov.uk/vat/start/register/waiting.htm

Does it help?

 

[citycm]

I think this is a really useful page for your issue ..

http://www.hmrc.gov.uk/vat/start/register/waiting.htm

Does it help?

Thanks, I'll give it a read

 

[citycm]

have read that link but it doesn't really answer my question. My question is with regards to invoices already issued prior to the date I apply for VAT registration.

 

[elaine@cheapaccounting]

Sales invoices issued prior to vat registration will not have vat on them. Then .....

Invoicing in the meantime

Until you receive your VAT registration number you must not charge VAT, or show VAT on your invoices. To make sure that you do not lose income in the period after you applied for VAT registration but before you receive your VAT registration number, you should increase your prices by an amount equivalent to the VAT rate relevant for your goods or services, and explain to your customers why you are doing so.
Once you receive your VAT registration number you can then reissue those invoices, amended to show your VAT registration number and the VAT charged. This will make sure that your VAT-registered customers may reclaim the VAT that they have paid.

 

[citycm]

Sales invoices issued prior to vat registration will not have vat on them. Then .....

Invoicing in the meantime

Until you receive your VAT registration number you must not charge VAT, or show VAT on your invoices. To make sure that you do not lose income in the period after you applied for VAT registration but before you receive your VAT registration number, you should increase your prices by an amount equivalent to the VAT rate relevant for your goods or services, and explain to your customers why you are doing so.
Once you receive your VAT registration number you can then reissue those invoices, amended to show your VAT registration number and the VAT charged. This will make sure that your VAT-registered customers may reclaim the VAT that they have paid.

I'm not entirely convinced that that section is relevant considering the invoices have already been issued so I can't raise the prices on invoices already issued. I suspect that that section is more to do with invoices issues after Vat application but before receiving the vat reg number.

 

[elaine@cheapaccounting]

Sales invoices issued prior to vat registration will not have vat on them. Then .....

.

I'm not entirely convinced that that section is relevant considering the invoices have already been issued so I can't raise the prices on invoices already issued. I suspect that that section is more to do with invoices issues after Vat application but before receiving the vat reg number.

I answered the bit about Sales invoices issued prior to vat registration before I quoted the section

 

[citycm]

I answered the bit about Sales invoices issued prior to vat registration before I quoted the section

ah sorry, I missed that

So, I won't have to pay vat on invoices already issued?

Sorry, the only reason I ask is because we have a couple of clients that pay invoices net 30 so always have 2-3 invoices running at the same time (for £200+ each).