**Sorry, I posted this is the wrong section, I have posted it under the proper VAT category**
Hi, I am new to this forum, but could someone please advise me on my situation.
I have just decided to become VAT registered. I applied online and was approved in 2 weeks.
However, I have a few unpaid invoices from clients which I issued 6 weeks ago, before even considering VAT registration. The payments from these invoices should be paid into my business account this week (and after my effective VAT start date from the certificate I was issued).
SO, my question is, do I pay VAT on these payments on my first VAT return? Id so, I will loose out big-time. I plan to use the Cash-accounting scheme.
Any info on this would be appreciated :)
-- Edited by Johny on Wednesday 7th of April 2010 02:00:25 PM
no need to post twice as we hit the recent posts button rather than the specific threads so basically pick up all new posts.
For completeness though I'll repeat my post here.
Please be aware though that Bill is more of an expert on VAT than myself and may have a different slant on this so don't take it as a conclusive answer just yet.
What follows is repetition of the content of the other thread.
The question is why did you decide to become VAT registered? If it was because you had already exceeded the registration threshold then the invoices should have been subject to VAT and should have been marking invoices VAT registration pending.
That would not have been a proper VAT invoice and payment should not be made on the basis of it as your VAT registration number must be included.
However, it informs the client of their pending liability for when the invoice is replaced by a proper invoice.
You become liable for VAT from the date that you should have applied for registration.
If this was a voluntary registration then you become liable for VAT from the date that you applied for VAT registration. NOT the date that you received confirmation of acceptance or your VAT registration number.
Assuming that this was voluntary registration then invoices prior to application would not be subject to VAT unless they would have pushed your turnover into compulsory registration anyway.
Rob, Bill, Mark, what are your thoughts?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Johny you may be able to claim vat back on some purchases, eg capital items, so long as you still hold them. you can go back 3 years for goods and 6 months for services.
shaun makes a valid point in asking why you went vat registered, whether voluntarily or because you had breached the threshold.
I recently did this for a client at work & we reclaimed (input tax) all his stock (unsold) from 10 months ago, he is within his right to put this through as hes paid vat on it, he claimed input tax on his office furniture/assets as well.
