I'm new to this site and I am wondering if anyone can help with my query, please. I raise sales invoices on SAGE for a small manufactoring company on a daily basis. Occasionally my boss and the customer agree to a lump sum as the total amount and this is shown on the invoice as such. On the few occasions that this has happened the invoice does not show the net or the VAT per item. Now, my concern is can the customer claim back the VAT using this type of invoice? If not, then what would be the best way forward bearing in mind that some of these invoices have been raised in previous financial years? Thanks.
I can't think of a reason not to show the VAT element of the invoice. If it transpires that you have not been issuing correct VAT invoices, then I would consider volunteering this information to the VAT Office along with copies of the relevant invoices. This action might mitigate penalties if the matter were to be discovered during a VAT Visit.
Have a read of the above link and let me know if you are following all the guidance there. If, for instance you were to sell zero rate items, then the customer would not know how much to reclaim.
We issue the invoices on standard rate unless it is a new building project, which is zero rated. The new building project is always clearly shown on the invoice.
All the invoices show the description and quantity for each item and the price per item. The exception being around five or six invoices per year which only show the description and quantity of the item (and not the price per item). The final line of the invoice in this case will state "lump sum as agreed" with the net price and the VAT price being displayed on the final line of the invoice. Does this still require a voluntary disclosure? Thanks.
Grew up in Blackley but spent many a Saturday afternoon as a lad at Abraham Moss Sports Centre and I've a sister in Bowker Vale. Based in Middleton now.
There should be a de-minimis threshold at the above link for simplified invoicing. Welcome to the forum.
Thanks for your advice. I spoke to the MD on Friday regarding the invoice issue and he seemed to appreciate my concerns. I'm hoping to take the firm forward and I think the MD shares my aims.
