VAT help - claiming input VAT on invoice issued after 30 days of goods received

Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
Several months ago we received an invoice from our supplier which was showing nil VAT despite being a standard rated supply. I contacted the supplier to clarify and on further investigation found this had been occurring for over a year. Since this the supplier has been issuing correct VAT invoices but we have now received several revised VAT invoices for the previous 3-4 months. I understand that the supplier has to declared the under-declared output VAT but is this the correct way to go about it? Are we able to claim the input VAT as we received the goods over 30 days ago which may make the VAT invoice invalid? The revised invoice is not the original invoice date but has been dated at today's date. My first thought was that they should take the original invoice amount as the VAT inclusive amount and account for the output VAT accordingly but I'm struggling to find the HMRC guidance.

Please can someone point me in the right direction?


  • payrollpro
    payrollpro Registered, FMAAT Posts: 427 Dedicated contributor 🌟 🐵 🌟
    Firstly, this is a common error, usually in the period immediately following first registration. Generally it is down to the recipient to decide if they wish to pay the new invoice, you don't have to. When a business is found to have failed to register at the correct time HMRC will assess them on the amount of VAT which should have been included on each and every invoice issued on or after the statutory registration date and that is a debt they owe. The business is encouraged to invoice their customers for the VAT itself, not issue revised invoices because it is only the VAT which is at fault, but they don't have to, they can just take the hit and be done with it. Similarly, their customers can refuse to pay the second invoice as in their view they could argue that they have fulfilled the contract to pay what has been demanded. Often a B2B transaction means payment is made and the customer merely reclaims the input tax, it makes no difference to them, but when it is a non taxable customer it is more difficult.

    Your case is similar. At present you have not paid any input tax therefore there is nothing to reclaim, however if you choose to make the payment then you will have an input tax cost and evidence to support a reclaim. Not sure a revised invoice is correct, usually the supplier would issue a second invoice for the VAT alone, a revised one cold just confuse things unless a credit note is issued for the original. You can only take the original invoice as VAT inclusive if it says so so as yours appears to say nil VAT then it is clear there is no input tax to recover. The fact that this is now over 30 days ago is, to me irrelevant. The problem is your suppliers but you do not have to concern yourself about how they put it right.The supplier does have to declare and pay the VAT which ought to have been included and collected as though it had happened correctly, i.e. taking the hit on the liability, again not your problem. It is the attempt to collect that VAT which is the issue and your decision to cooperate or not with that. If your company is registered then really it is no cost or problem to you to pay the VAT and then reclaim it, it is an irritant rather than a fundamental problem.

    You are right, I cannot find the guidance, however there is a standard rule, if you've paid VAT and you have the evidence of that then you have the right to reclaim it, simple as that.

  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    Thanks for your reply.

    We have had word from the supplier that we will not receive any further correcting invoices from them so it seems they are only correcting their most recent VAT quarter in this way so we have agreed to pay. I was worried I was going to be inundated with correcting invoices for the entire period we have been dealing with them!

    Thanks again.
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