Late VAT registration and VAT Not invoiced

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone help me, please?<BR><BR>If I'm late registering for VAT, I have to repay the VAT that I should have invoiced. Now, I'm not likely to request this from my trade customers, and it would be impossible from shop customers. However, I have to record the VAT that should have been on the invoice/receipt.<BR><BR>What's the formula? Is it 17.5% of selling price? Or is it 7/47 of selling price? In other words, do I assume that I would have increased the selling price? Or do I assume that it was included but not shown?<BR><BR>I hope this makes sense and look forward to your suggestions.<BR><BR>Thanks.<BR><BR>Mike<BR>

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Late VAT registration and VAT Not invoiced

    Mike,<BR><BR>I would say that as you were not registered therfore your sales would not have included VAT so you do 17.5% of SP.<BR><BR>Regards<BR><BR>Eddy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Late VAT registration and VAT Not invoiced

    Thanks, Eddy.<BR><BR>I was afraid of that!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Late VAT registration and VAT Not invoiced

    I think it shoud be: VAT= 17.5%*(sales*100/117.5)----sales is the amount you get from customer
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Late VAT registration and VAT Not invoiced

    Thanks to everyone for the help.<BR><BR>I managed to get hold of my tutor and the answer is that, in the case of late registration, the sales are viewed as having included VAT. Therefore, the Output VAT that should have been recorded is Sales Value x 7/47. So, for sales of £100, the VAT owing is 100*7/47 = £14.89.<BR><BR>To sort out the ledgers, you would have originally credited Sales with £100. To correct the VAT liability, you now have to debit sales with £14.89 and credit Output VAT with £14.89. That way, your sales is shown excluding VAT at £85.11 when you balance the accounts, and the VAT is also shown correctly.<BR><BR>Thanks again for all those who took the time to answer.

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