VAT Charged

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Dufus

Guest
I've just set myself up as a Limited Company but it is taking a while to get a VAT number due to a backlog in this area.

I need to invoice for services (consultancy services) and wasn't planning to until registered, but my customer is insisting that I charge her VAT. What happens if I do this before I'm officially registered? I'm happy to pay it to the government and explain the scenario but obviously don't want to do the wrong thing here...
 
Dufus said:
I've just set myself up as a Limited Company but it is taking a while to get a VAT number due to a backlog in this area.

I need to invoice for services (consultancy services) and wasn't planning to until registered, but my customer is insisting that I charge her VAT. What happens if I do this before I'm officially registered? I'm happy to pay it to the government and explain the scenario but obviously don't want to do the wrong thing here...
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Its highly illegal to invoice for VAT while not VAT-registered. You can't afford to mess around like this unless you know what you are doing, especially if have a limited company, as you could quickly, if inadvertently, build up a very bad reputation for yourself with Revenue and other regulators. Get professional advice.
 
Ok thats what I thought...So can I still invoice and not charge the VAT or do I have to wait until I'm VAT registered?
 
Until you receive your VAT registration, it is perfectly ok for you to invoice and not charge VAT. Once you are VAT registered, you must then charge VAT on all subsequent invoices.

Hope this helps.
 
Dufus

i had a similar problem waiting for my VAT number. I got tired of waiting and simply rang my local revenue office and they then gave me my VAT number over the phone.

C
 
Capaill, thanks a mil. I'll give them a yell and see if I can get it.

Does my customer have to treat my invoices any differently given theres no VAT. I'd be happy not to charge it but they don't seem to understand I can't. In the meantime I could do with some cash flowing!!
 
Your customer wants the invoice to be VAT inclusive in order that she can claim an input credit against the VAT she owes to Revenue.

It is highly advisable to register for VAT as soon as you can in order that you don't loose out on any VAT input credits.
 
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