backdating VAT

[Flightmapping]

Tweet

I rcecently registered for VAT, but with my accountant saying I could backdate it (to reclaim all those adword spends), C&E sitting on the form for a few weeks, and then all this paperwork sitting at the bottom of the pile for a few more weeks, I'm in a bit of a panic!

AFAIK, it is perfectly fair game to issue a VAT only invoice. clients should be OK to pay it, as they then claim it back themselves. Can they do this, even if they have already sent in their VAT return - do they just add it to the next return?

Also, which networks now need an invoice, and who is it sent to?

There was another thread in this, but it isn't in the index. Please correct if wrong:

CJ - US registered, so still no VAT? Google can charge us VAT from the US, but we don't charge VAT to the US - I take it that is correct, as I really don't want to be landed with a VAT bill for all these comms, they are the biggest network I deal with.

TD - pay 2 months in arrears, so a payment received in mid December is for October sales, VAT date 1st Nov?? They have a VAT number option, but who do I send an invoice to for amounts already paid?

Befree - BA is my main concern. I get statements from BA, but funds from BeFree (on bankstatement as Be Three!). Who gets the VAT bill?

Am I right in thinking that I don't hand the cash over to C&E until the VAT invoice itself has been paid?

[chrisk999]

Hope I can answer a few questions - someone tell me if I get any wrong

If you send someone an invoice for backdated VAT, it's their problem to sort it out at their end. Sure it's not too much trouble for them.

Ad.com is the only network that needs an invoice (that I use), and they need that whether you're VAT registered or not.

The others I just make up an invoice, but never actually send it to them (they know how much to pay you, so no need to remind them, as they self-invoice for you anyway).

CJ is 'outside the scope of VAT' so you don't include that on the VAT form.

Google don't charge you VAT once they know you're registered (after you've filled in your reg no. on the account details page), and you have to account for this with the 'reverse charge procedure'. Full details here: http://www.hmce.gov.uk/business/tradinginternet/tradinter-24.htm

I put the TD invoice date for October coms as 31st October, although this might be wrong/'inefficient'. Again, I just make up an invoice but don't send it (but they must know your reg number, so they can pay you the VAT).

I don't deal with Befree, so can't comment on that one.

Also you have to pay C&E for any VAT from invoices 'sent', regardless of if you've been paid, if you're using their standard accounting system. If you use the cash accounting system, you only pay vat once it's been received (but there are certain regulations surrounding that one). Bit of a bummer if you have to deal with late payments etc.

Hope this helps

Chris

[Flightmapping]

Also you have to pay C&E for any VAT from invoices 'sent', regardless of if you've been paid, if you're using their standard accounting system. If you use the cash accounting system, you only pay vat once it's been received (but there are certain regulations surrounding that one). Bit of a bummer if you have to deal with late payments etc.

Are you just saying that if TD have my VAT number, they will send me a payment for previous VAT? Invoices for last month have the VAT added - it is the months before that which I am concerned about.

[chrisk999]

No - I meant that once you've submitted an invoice that includes VAT, C&E don't wait for the invoice to be paid before including it in your VAT return.

i.e. you submit an invoice to a company including VAT, and they don't pay you for months, you still have to include that VAT in your return if it's due before you get paid.

You will have to invoice Tradedoubler for VAT on past invoices.

[chrisk999]

Also, this probably won't help matters, but I had a lady from C&E round here a few weeks ago, and I asked her about reclaiming VAT from past Adwords spending (as I've paid lots of VAT on that in the past).

She said I couldn't reclaim VAT paid to a company registered in another EU country (i.e. Google). According to her, you can only reclaim VAT paid to a UK-registered company.

Anyone else know anything to the contrary?

[getvisible]

Anyone else know anything to the contrary?

nope - 'tis true

[Flightmapping]

Right, that's all I need! So I have to hand over VAT on invoices I havent been paid for, yet the VAT I've paid on the 5k or so of Adwords spend since July (my account is with Google.com) cannot be reclaimed?

This really messes things up big time.

[Shane]

so now on top of google's totally inflexible payment options we can't even claim that vat back... like wtf... makes offshore look even more attractive.

my accountant gonna get a rocket up his ass at 0905am tommorow for sure.


seems a bit off that the government make you shell out the vat yet you can't claim it back, surely then if logic applied such payments would be vat exempt then as the company is deemed a foreign company ?

so can someone explain why is google collecting vat in the first place then ? cos I am befuddled

[chrisk999]

I was v disappointed too - would have got a good profit boost if I could have claimed back the VAT.

The C&E lady said it was because Google isn't registered in the UK. If we'd been being billed by Google UK (rather than the EU38384848 jobbie on the invoices), then it'd be all okay.

So this is why you don't pay any VAT on your Google bills if you're UK VAT registered, because the government can't claim it back from a foreign country. (so you do that reverse-billing rubbish instead... argh)

Chris

[chrisk999]

Hmmmm.... also just thinking, if I were to go shopping in France say, I'd have to pay French VAT on my purchases wouldn't I.

So it's just the same... I think? (or can't you get a refund or something off the French customs on your way back if you've bought enough? I know you can do that in Australia anyway, but then that's not Europe )

[missey]

Any ideas on Amazon?

They don't have an area to enter a VAT number.

I have just got my VAT number and am having to back date to 1st May last year. (Oh dear!).

It's a right bloomin pain making money. Why can't the government scrap all tax and just tax goods? i.e. a consumer tax.

[ianm]

Email affiliate support with your VAT number and associates id(s). Might be an idea to tell them your registration date as well and just ask them to confirm that you can send them a separate invoice for the previous quarter's VAT


Then each quarter they email you with your earnings and you invoice them.

[missey]

Thanks.

[talk4]

I'm really glad I saw this thread as I have been trying to back register for VAT to reclaim all the VAT I've given to Google. Now I know that I don't need to bother and just need to register asap. Bad news but could have been worse if I'd not seen this!

[renegade]

Originally posted by chrisk999
Google don't charge you VAT once they know you're registered (after you've filled in your reg no. on the account details page), and you have to account for this with the 'reverse charge procedure'. Full details here: http://www.hmce.gov.uk/business/tradinginternet/tradinter-24.htm

This is the nitty gritty but I can't figure out how to add VAT to a Google invoice when I'm entering the bill in Quickbooks.