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MAJOR problem : VAT on purchases
I'm trying to add an invoice for a purchase I made whilst not VAT registered. I get the error message:
"The following errors were found:
This invoice has VAT yet the invoice date indicates that you were not VAT registered at the time."
As you'll know, you can claim back VAT on services purchased in the 6 months prior to VAT registration, and purchases made up to 2 years before registration so long as the company still uses them and they were for the process of setting up the company.
Thus, although I was not VAT registered when I bought them, I will still be wanting to claim back VAT on them.
"The following errors were found:
This invoice has VAT yet the invoice date indicates that you were not VAT registered at the time."
As you'll know, you can claim back VAT on services purchased in the 6 months prior to VAT registration, and purchases made up to 2 years before registration so long as the company still uses them and they were for the process of setting up the company.
Thus, although I was not VAT registered when I bought them, I will still be wanting to claim back VAT on them.
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The best answer from the company
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As a quick work around you could simply change the invoice date of the purchase so that it falls within your new vat registered scheme.
Then write a note on the invoice saying that the real invoice date was actually dd/mm/yyyy.
As for a long term solution that will require a little more work.
The company and 1 other person say
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Inappropriate?Jack, glad you're beta testing this situation, ready for when my VAT reg comes through! I'll soon be having the same problem.
Rob.
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Inappropriate?Fair point, I'll add it to Tim's to-do list. Will next week be too late to sort it out? If it's urgent, just let me know and I'll try to get some help from our developers.
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Inappropriate?Jack it's not quite as straightforward as that.
Have a read here http://www.hmrc.gov.uk/vat/start/regi...
It has to be a good or service you purchased before you were VAT registered that are still in possession of, or has gone towards the production of a good or service, that you are selling after you are VAT registered.
i.e. if you bought 5 widgets before registering for VAT and also used/sold them before registering for VAT then you could not claim that VAT back.
If you sold them after, then you might be able to.
As we don't have stock control we don't currently know when a good is bought and then when it is sold to make the differentiation.
First of all I would take a look at your purchases that meet the full criteria to see how many there are/value.
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Inappropriate?hmm, I, as an example, bought a new Laptop before getting VAT registered, and use it for working. That would surely fulfil the criteria?
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Inappropriate?as Benjamin said. I bought a subscription for a barcode company and still use the barcodes. it was a setup expense.
thus when i bought it, it had vat included that I can claim back for even though I was not vat registered. -
Inappropriate?As a quick work around you could simply change the invoice date of the purchase so that it falls within your new vat registered scheme.
Then write a note on the invoice saying that the real invoice date was actually dd/mm/yyyy.
As for a long term solution that will require a little more work.
The company and 1 other person say
this answers the question
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Inappropriate?hi Tim
That's really not ideal solution for me to enter in like that as like you say they'll be an audit trail etc. and hmrc apparantly phone you soon after vat registered to check vat purchases etc. so i'll prob wait till better solution in. thanks. -
Inappropriate?If you make a note of the original invoice date and reason for change of date (you can add notes to the bottom of invoices once they are created) then you have created your own audit trail.
I don't want to hold you up claiming your VAT back. As a lot has built up on the to do list, I can't set a specific date for when a worka round will be ready.
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Inappropriate?I've been reading up on this as well, as literally I am registered as of today.
Pre-VAT registration invoices has to be treated differently anyway. Reading the instructions, you're supposed to put them in the 'Other' or 'Misc' boxes.
I haven't done my first VAT return yet, but I would imagine I would just do the pre-registration invoices manually, and tabulate them on a worksheet to put in this 'Other' box.
Does VAT Returns through Clearbooks allows inputting this 'Other' box? -
Inappropriate?Ok, upon further reading of http://www.hmrc.gov.uk/vat/start/regi... actually it just needs adding to Box 4.
So for the first VAT return I imagine I would not be using Clearbooks, just use HMRC online, copying figures and adding pre-reg reclaims as necessary
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