backdating VAT

[justnozy]

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Hi , interesting thread & although I can normally follow most of the threads there are so many misconceptions in this one its even confusing me ( ex accountant, now importer/exporter ).

There is only one piece of solid advise here since you all have different circumstances ;-
Ask your local VAT office for a meeting to discuss your own situation. If you visit them they are generally very helpful. If they visit you ( investigate sometime in the future ) they are looking for mistakes.

Flightmapping there is no problem issuing a VAT only invoice providing it covers a period in which you were entitled to charge VAT ie from Dof Reg. - NOT FOR A PERIOD BEFORE.

Backdated claims. General rule is you can only claim VAT you were charged before your registration for tangible assets ie equipment etc You can not back claim for services & consumable goods ( telephone, petrol, consult fees etc ) supplied before you were VAT reg.

However, if you were "deemed" to have been VAT reg by C&E - that is they decide you should have been registered at an earlier date than your application all vatable supplies you made from that date will be deemed to have included VAT and you are liable. In most of your cases you can get past this by issuing VAT only invoices to your customers - if they are VAT reg !
C&E have quarterly threshold limits if you hit one of these limits you are deemed to be registerable even if you have not yet hit the annual value. You should keep your eye on this. If you hit a quarterly limit but do not expect to hit the annual limit you can ask not to be registered - with very good reasons to back you.

I know jack-sh*t about affliate invoices from the Merchants, Google etc but I imagine the logic ( yes there is some) is the same.
Missey Why can't the government scrap all tax and just tax goods? i.e. a consumer tax.
Then you could not reclaim your input tax. VAT is a better tax for many reasons ( later maybe )
ShaneRbn21
For Quickbooks purposes only !!! You can set up a sub category ie "commission charged - export " and set the VAT setting to exempt. Then when you pull off the "detailed" VAT summary you can move this out of Vatable Supplies into supplies to EEC countries or visa versa.(advertising - overseas ).

continued :-

[justnozy]

Re should google charge etc. If an overseas supplier is exporting "goods" they do not charge local VAT however when the goods arrive in UK the customer must pay UK VAT. But in googles case I imagine it is deemed they have supplied the "service" in Europe and not exported that service - therefore they must pay local VAT. It would appear if they are dealing with VAT reg UK customers they are arguing that the service is exported & can back this with a UK VAT Reg. No. or maybe it is being rerouted through google UK.
chrisk999 yes you can reclaim even in EEC but only for tangible products - not for taxi's, hotels, etc And of course you then have declared to French customs the value of products you are effectively importing into UK - don't be surprised to be hit with UK import duties & VAT when your plane lands - see recent postings re;- CD Wow.
So I have to hand over VAT on invoices I havent been paid for, VAT is payable/chargeable at the Tax Point ( the date of supply or Invoice date whichever is earliest.) So yes if you issue an invoice it does not matter when if ever you get paid you have to pay the VAT element to C&E ( there are rules for bad debts ).
So chrisk999 it's their problem to sort it out at their end but if they don't pay or are slow it becomes your problem!!

( Incidentally I rembember reading a thread wherby it was thought to be a good idea to get US merchants not to pay until later - thereby passing Income Tax liabilty to the next year - this is illegal for reasons similar to above. Tax is due on profit regardless of when you receive payment).

Hope I do not have "Egg" on my face !

[Mogga]

You could ask in uk.finance someone might know there