Do I pay VAT on old Invoices - if new registration.

[prozak]

What happens if:

You start up a company and business is booming immediately. You previously thought you wouldn't hit the vat threshold so had no plans for VAT.

But now, because of business being so good there is also an opportunity to invest in some "plant & machinery".

So VAT is looking like an excellent option as the plant is pretty expensive!

But what happens to the invoices you have charged in the past 23 days? - i'd rather not lose 20% off them as the price was based on there not being VAT !

Clear as mud?

Thanks.

[TheCyclingProgrammer]

It depends entirely on your VAT registration date. If you haven't backdated your registration then you simply add VAT going forward.

If your VAT registration date predates any sent invoices you should either issue a VAT only invoice to your clients or ideally - and this is HMRC advice - issue a credit note for the old invoices and re-issue valid VAT invoices.

[prozak]

Thank you. So If I register from the next quarter it should be just continue on and start adding vat to invoices.

Cheers.

[TykeMerc]

Thank you. So If I register from the next quarter it should be just continue on and start adding vat to invoices.

Cheers.

Yup, I think you can even request a registration date in the future. If you ring the HMRC VAT helpline they can confirm all that.