One of my clients book people into a local hotel when they are doing work for them. The hotel recently changed hands and since then the invoices have been coming in with VAT No Pending on and VAT being charged.
I have telephoned the hotel about this and they said they had applied for registration.
However, it is my view that VAT registration does not take very long and these invoices have been being received 14th April.
Does anyone know how long one should accept VAT No Pending invoices or what to do, ie contact HMRC?
I always thought you couldn't charge VAT on an invoice until they were actually registered with a VAT number etc. I've not come across this before.
I would contact the HMRC, then at least you know that the answer you get will be correct. (hopefully anyway from the HMRC).
Just remembered that a client of mine at the time, did have to go VAT reg due to being over the threshold and the accountant told him at the time not to invoice with the VAT on it until after the date of registration.
From what I can gather from reading VAT website. The company can add the VAT to their invoice but should not show it as a separate item, then when they get their number they re-issue the invoices showing the VAT and the customer can then reclaim it. However, this hotel has been issuing invoices since April showing the Net VAT and Gross total.
It does seem abit strange that it has taken that long to get a number, I thought it was usually quite quick. Do you think they are adding on the 17.5% VAT to make abit more on the invoice, but maybe they are not VAT reg or even applied for it? I would like to think that people aren't like that but I suppose you just never know.
I recently registered a client for VAT (to start 1st October) and he got his number within two weeks. The HMRC website does say that it can take six to eight weeks, so I would say that nothing since April, is excessively long.
As you have already found out, the supplier should add the VAT to the invoice but not show it separately until the number is issued. They should advise customers that they will issue an acceptable VAT invoice, to replace the one issued, as soon as they have the registration number.
It may be worth enquiring with HMRC if they have applied.
I know you can confirm that company is legitimate by putting their number into this site.
When a company applies for a VAT number to be given from a given date, then they should add the amount of VAT to the net amount, put this on the invoice but only as a single figure and not seperately as Bill has mentioned. They should also state on the invoice that VAT has been applied for. Once a VAT number is allocated, they shuold then re-issue the invoice showing the VAT as as seperate item. Only then can you claim the VAT back.
If they jsut apply for a VAT number and not give a date from when they wish to be registered, then they should not add VAT to the invoice.
As for timings, it can take a very long time or be very quick - there is no consistency as I have applied on behalf of 2 companies, almost identical details, one got registered in about 2 weeks, the other never got registered after 4 months of info requests etc form HMRC.
