I have recently started doing the book keeping for a company who rent a number of properties commercially (about 150). Rather than pay on invoice this company pays according to the terms of the lease to cut down on the amount of invoice processing. When they taken on a site they have asked for proof from the landlord that they are VAT registered and if so put the VAT registration number into the JDE Edwards supplier header. At no point is the company asking for VAT invoices from the landlords. I have been told that this is because, if the lease states VAT is due and we have the VAT registration number we do not need a seperate invoice to claim back any VAT we have paid against that property. This seems fair enough to me but does anyone know whether this is correct.......?
I would always recommend getting paperwork in some form or other. If they pay monthly say by DD or Standing or even regular BACS payments and don't want monthly invoices, Then I would suggest they get an annual vat statement of sorts that schedules out the repayments in the year and the vat payable.
a bit like you do on a lease agreement for a vehicle. they don't issue invoices each month, they just give you an annual VAT statement listing the payments due and VAT payable so you can claim it back each month when payment is made.
