Self Billing Question

lgarsidelgarside Well-KnownRegistered Posts: 122
We have received a Credit Note from a Sub-contractor for a Valuation dated 2010. The rate of VAT should be the date of supply when talking about Invoices but the creditnote is at 20% not 17.5%?

Am I right in thinking that the rate of VAT on self billed creditnotes should be the rate at the time the creditnote is paid in a similar way that the rate applied to valuations is based on the rate when paid and not actually raised?

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,069
    lgarside wrote: »
    We have received a Credit Note from a Sub-contractor for a Valuation dated 2010. The rate of VAT should be the date of supply when talking about Invoices but the creditnote is at 20% not 17.5%?

    Am I right in thinking that the rate of VAT on self billed creditnotes should be the rate at the time the creditnote is paid in a similar way that the rate applied to valuations is based on the rate when paid and not actually raised?

    I don't think the self billing makes a difference.

    The VAT on a credit note should be the same rate as the VAT on the invoice to which it relates.
  • PAMDILLPAMDILL Experienced Mentor Registered Posts: 715
    It is my understanding that subcontractor valuations etc. are done in that way so the subbie is not having to pay out VAT until paid and the contractor can't claim it back until then. The VAT rate on the payment certificate (used as invoice) for the valuation is then at the rate when paid.

    I know that if the credit note is done as a form of valuation where it is issued showing a reduction in the overall valuation then the VAT rate would be the rate when payment is made.

    However if the subbie has issued you with a standard credit note then you enter the VAT rate that he has shown.
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