Quick note on the VAT change

Discussion in 'OT (OFF Topic) Forums' started by bigbobs cl, Nov 27, 2008.

  1. bigbobs cl

    bigbobs cl Hardcore MB Enthusiast

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    I`ve already posted this but may be of interest to some!! This is what it says on the letter from the VAT.


    "If you have received payment or issued an invoice before Dec 1 for goods that will be provided (or services) after Dec 1 you have a choice. You can choose to account for VAT at the new rate of 15% on the amounts already received or invoiced. You don`t need to tell HMRC if you do this. In these circumstances, any payments received or invoices issued after Dec 1 will always be subject to the new rate of 15% But you do need to issue a credit note to the customer if you have already issued a VAT invoice showing the old rate of VAT"


    So, if anyone has made a payment for something they are taking delivery of after Dec 1 (kitchen, new sofa, TV, Holiday) get back in there and get your credit note off them!!


    Bob
     
  2. A-AvantGarde

    A-AvantGarde Hardcore MB Enthusiast

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    Ah, but they don't have to do they? It's offering some guidance but it is not a directive.

    VAT is charged at the prevailing rate at the time that the invoice is raised (in this case before 1st Dec when the VAT rate changes). If you've had an invoice and have paid for the goods / service and are awaiting delivery then technically you are still liable for the VAT at 17.5%.

    All that this says is that if the goods haven't been shipped or the services haven't been provided you can effectively charge the lower rate of 15% but you need to issue the customer with a credit for the difference.
     
  3. BigBenz

    BigBenz New Member

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    Ordered a nearly new car for the missus last Saturday, invoice raised with 17.5% vat, I rang the garage on wednesday and asked for a new invoice to be raised at 15% vat as we are collecting & paying for the car on Monday 1st Dec. After 30 mins the salesman rang me back to tell me the company accountant had agreed to the new invoice so I'ved saved £150 which will go towards my golf club fees for next year - result:bannana:
     
  4. NewMB

    NewMB Hardcore MB Enthusiast

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    I just ordered an iPod USB charger from Apple and delvery should be made on 1/12.... invoiced at 15% VAT!
     

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