Advice for newly V.A.T registered company

[Pete Hart]

*genuinely

 

 

http://www.aatreesurgeon.co.uk

[Kev Stephenson]

From the HMRC website

 

When a VAT invoice must be issued

 

If you are registered for VAT you must give any VAT-registered customers a VAT invoice for any standard-rated or reduced-rated goods or services you sell them.

 

If you are a retailer, you do not need to issue a VAT invoice or receipt unless your customer asks for one.

 

As a VAT-registered supplier, you may be liable to a fine if you do not issue a VAT invoice for a supply you have made when asked to do so by a VAT-registered customer.

 

There is a time limit within which VAT invoices must be issued - see the section in this guide on time limits for issuing VAT invoices.

 

Top

[Pete Hart]

Thank you. however I'm specifically interested in the quote aspect, as it has been mentioned that you don't have to state vat when issuing a quote?

 

 

http://www.aatreesurgeon.co.uk

[Inoff the Red]

If you issue a quote and fail to mention that the quoted price is subject to vat, then the customer is entitled to believe that the price quoted is the contract price. You cannot then go back and add 20% for VAT. It is not open for one party to unilaterally change the terms of a contract.

 

Issuing a quote and then trying to ramp up the price by introducing hidden extras is the tactic of a rogue trader.

[Kev Stephenson]

You don't have to issue an invoice detailing VAT to non vat customers so why would you have to issue a quotation showing the VAT? If they can't claim it back it doesn't matter.

 

Like has been said though you can't tell someone their tree work is £400 then when it's time to pay say that will be £480 including the VAT.

 

When you go to the petrol station the price shown is 139.9p/litre and that includes VAT. On your receipt the transaction shows 70 litres @ 139.9p/ litre = £x with the VAT breakdown shown below.

[Gray git]

As long as the price showed includes the vat and it's not extra on top no need to tell them that it is included if they carnt reclaim it, as far as I can tell anyway.

[Pete Hart]

I'm thinking purely from the aspect of not putting off domestic customers. Far from trying rip anybody off. The gross price quoted with no hidden or extra charges.

 

What I'm trying to get across is that by not having to put 'inc. vat' or 'plus vat' on a quote it can't put off private customers who resent paying vat to tradesmen.

 

Invoicing is another thing entirely as I'm well aware you have to state vat no. And vat details etc.

 

 

http://www.aatreesurgeon.co.uk

[gensetsteve]

I cant see why you need to split the vat out. If someone gives me an invoice and they have a vat no. If the total is inc vat I can just work it back. It used to be that purchases under £100 did not need a full vat receipt. A till slip with vat no was fine but times change.

 

I can see giving domestic customers a quote or invoice showing vat could alert them to a saving if they used a small out fit. But then they would need to charge more to cover the vat they cant reclaim on fuel and kit etc. Swings and roundabouts.

[Inoff the Red]

All i am saying is that if you give a quote of £100 and don't make it clear that VAT is to be added, you cannot then charge them £120 (i.e. £100 plus £20 vat) when you give them an invoice.

 

If you quote and invoice £100, then in your accounts you have made a sale of £83.33 and vat of £16.67.

[dig-dug-dan]

As a VAT-registered supplier, you may be liable to a fine if you do not issue a VAT invoice for a supply you have made when asked to do so by a VAT-registered customer.*

 

I brought a trailer off a guy who sold it as plus vat, and he would not supply me a vat invoice to reclaim the vat. I tried to report it to hmrc and they did not want to know. What a waste of time