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 08:02:33 PM
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?
__________________
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.
I opted for VAT registration, as I handle more and more printing every week, and wanted handle the invoices myself. I don't pass the £67,000 threshold, though ;)
