VAT Membership Subscription

angmc

Hi

I'm not an MIP (I'm studying AAT at the moment) but I was hoping someone on here could help me with this one...it's probably very basic VAT but I've not come accross it before.

The company I work for has taken out a membership subscription that we'll be paying by direct debit on a monthly basis. The supplier has sent us a VAT invoice for the full amount with the invoice/tax date as 1/3/13. They have also sent us a "Tax Certificate" with a schedule of monthly payments each with an individual tax date. It says "this schedule has been issued for VAT purposes only and is not a demand for payment. Please retain this document, you may need to produce it for HMRC to support your VAT returns". My question is can I use the tax date on the invoice (1/3/13) to reclaim the whole of the VAT in that period or do I have to reclaim relevant portions of it each month as per the VAT schedule? We are registered for standard VAT.

Thanks in advance.

Diddy Mau

Hello Angmc

I'm no VAT expert, nor a MIP. However, I would say reclaim the VAT in portions.
1. You have the paperwork for HMRC
2if your paying in monthly instalments, you would then have to cliam it with No VAT, ok, but if someone else does this one month and submits the VAT return, you are then claiming VAT twice.

Again, I will be interested to hear from the experts:thumbup1:

angmc

Thanks Diddy Mau

That's what I was thinking but didn't know you could have more than one tax point per invoice, but obviously you can! So I take it I'll have to enter each payment on Sage as an individual invoice using the tax points on the schedule? Seems a lot of faffing about for a relatively small amount of VAT (£44.10)!

peaman

It is easier if you don't enter the supplier invoice on sage.

Each month when there is a payment, just post as a bank payment direct to the Subcriptions nominal code and claim the VAT.

angmc

Thanks, I might just do that then, or I could always do it as a recurring entry.