VAT invoice

Yazi

Hi.

I have received an invoice which covers consulting for Dec 10 to Nov 11.
Itemised months show Vat at 17.5% for December.
Jan to Nov show Vat at 20%.

As the invoice is dated 6/12/10 is it correct for the business to apply the 20% vat for the 2011 charges?

Thanks in advance.
Yas

bumblebee

Its a service charge invoice and its accounted on 'per month charge' basis, Even if the supplier decided to issue this invoice at a later date the VAT rates are correctly applied. You cannot be charged 17.5% for services that will be charged after 4th January.

Yazi

Thanks for your reply Bumblebee

janwal

We had this problem last time, if they want to charge you 20% they can not invoice you until after 4th Jan, company tried it with us when we changed from 15 back to 17.5%, checked with our Vat company and no they have to wait until Vat rate in use.

Hope this helps

Marga

Hi

IF you have received the invoice now it is because the order has been placed now and invoiced up front independently of when the work is to be completed then the VAT that you should be charged is 17.5%

IF the work is not to be charged to you until the services/work is completed (ie next year) then you should query the invoice and not pay it until they send separate invoices for each of the months then each invoice would attract each own VAT (whether this is 17.5% or 20%)

I would recommend to check what the contract you have with that specific supplier

To be honest i work in credit control and we have some debt issues due to suppliers invoicing upfront for work that is not to be completed until a month or two later and we have had problems with 15% and 17.5%

Hopefully that helps