VAT query

tinajanine65
tinajanine65 Registered Posts: 21 New contributor 🐸
in General accounting discussion
We have a new client who, after putting in his income figures, has gone over the VAT threshold for the year. We have received previous accounts from the client showing that he has been over the threshold for the last two years, and is not VAT registered!!. Does anyone know how to work out, month by month, when he should have been registered from.

Comments

  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    You will need to go back through his records and calculate on a month by month basis at what point they reached the VAT threshold. They should have registered 30 days from this point.

    If this had been a one off in one year it is possible to apply to avoid registration, however as this has been for two years, I don;t think you will get away with it.

    If your client is dealing with businesses they can reissue invoices to show the VAT amount added. However, if they are dealing with the public then they will have to stand the cost of the VAT less any inputs.

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