Could I just check with anyone; I work for a costume hire company. We get requests up to a year in advance for costume sets, which we proforma an invoice against. We have a very basic system that we work in parallel to Sage, so it creates a PF invoice with the date of issue of the PF invoice. Once paid it gets transferred as a VAT invoice (once raised ) onto Sage. Am I right in saying that once the goods are paid for, we issue a VAT invoice with a tax point date of the payment, as sometimes that is the date the goods go out and sometimes prior?
Also, just about to do my first year end and cut off is just concerning me a little. Again, can I clarify that the pro forma invoices raised are not considered cut off as they are not considered part of the accounts at that stage?
Your basic tax point is usually the date the product is taken away, however in your case, as the client has paid before the product is taken then the actual tax point is at either the time of payment or date the vat invoice is issued, whichever is the sooner.
