hi, I need help big time. the company I'm working for have realised that they have not charged VAT when they should have to customers they have done work for. They should have been charging VAT on travel etc. but haven't. the customer now wants the last 4 years worth of invoices crediting, then re-invoicing using the correct amount.
I don't this is possible on Sage but planned to do this manually them put the VAT only invoice onto sage amounting to around £722. The customer wont accept VAT only invoices.
To be honest does the customer have a choice ? At the end of the day as long as you correct them it is up to your client his they do it-as long as you list which invoices the Vat relates to -maybe a line per invoice number I don't see a problem.
Be aware you may have to alert Hmrc because of the time frame
I wouldnt do it. Why will they not accept a VAT only invoice? I would try talking to them again to find out why/negotiate a better process - as Sharon suggests - one VAT invoice detailing all the invoice references should do it. Create it in excel if there are quite a lot so you can add their references/any others they may need to enable them to cross reference it at their end - if thats what will then help them, then convert to pdf and then you just enter it into your software as one item - surely would be easier for them on that basis. i often hear the 'wont accept' phrase when people dont want to pay you more (even though in this case they will get it back from the VAT man), but more commonly because they dont know how to do something - so in this case it may just be because they think they dont know how to process it, or its just a 'computer says no' kind of reaction. This kind of negotiation usually works better over the phone rather than email/letter.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
