VAT3 Return and Unpaid invoices

Hi All, my question:
I am doing my VAT3 returns, I have sold services and some equipment for the moths 03-09 and 04-09 I have not been paid on this invoices. Can I place 0.00 in the T1 (Sales) field? if so what happens when I do get paid eventually, when do I have to declare that? In the next VAT3 return cycle? - Thank you Rohan

If you are registered for VAT on a "monies received" basis then you only account for the VAT on sales when PAID. If you are accountable on an "invoice" basis, then you account for the VAT when invoiced. Check whats on your registration. It is most likely ( unless you're a very large business) that its the "monies received" basis. In that case you declare the VAT to Revenue in the VAT period when you get paid.

Yep, I do a lot of kitchens.. and payments regularily go into two VAT periods, sometimes three or four periods... so I must be on 'monies received'...

So I get a deposit which I pay the VAT on in period 1.. then I get a stage payment during Period 2, pay the VAT, then I get a final payment in Period 3 and pay the VAT then.. I raise seperate invoices for each payment as it was getting too difficult to keep track of payment if they were all on the one invoice and payment could take months...

I also have outstanding money owed to me, in some cases for over a year.. I haven't paid the VAT on them and won't pay the VAT if I don't get paid.. I hope this is an ok way of doing things...

I also have kitchens made since January this year that are still sitting here in my workshop as the customers seem to have massive delays of 3 or 4 months, I don't understand how that's happening... in one case in the second week in January it was confirmed that we'd install by the end of January.. by the third week in January it was postponed and the kitchen is still here now in May.. (???!)..

Cheers
Joe

These sort of delays are not unusual, especially today. It is important, where possible to get a payment on commencement as that, at least, helps cover materials. You can raise invoices to match payments and then issue the customer a statement at the end showing all invoices and payments. It is also important to note that while you only account for the VAT as payments are made to you, the actual value of the outstanding invoices would show as debtors in the year end accounts. This means that the profit on those jobs not yet paid is included as is is "earned" in the year while not paid. If there is any doubt as to the recoverability of any such unpaid jobs at your year end you need to note this for your accountant so that such jobs are not included where their recoverability is doubtful.