Can I generate a VAT invoice for a supplier?

Brendan Burgess

Brendan Burgess

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We have a supplier who is not very organized in their invoicing. They send us a monthly invoice for the same amount.

I would normally not pay someone until I get a VAT invoice from them.

I would like to pay this supplier by standing order but I know I would not get invoices from them for months.

Is there anything to stop me generating the invoice on their behalf and paying them?

Could we generate a "credit note" from us to them and send the payment with it?

Brendan
 
Hi Brendan

We have a customer who effectively generate our invoice to them. It is slightly different to your situation in that we are supplying goods but the principal (principle? ) should be the same.

The sequence of events is:
1. The customer produces a PO and sends it to us via internet.
2. Assuming we agree the quantities and prices we accept the PO.
3. When the customer receives the goods they produce a "Settlement Voucher" which, on acceptance by us becomes our invoice.

You would need to make sure their VAT number is quoted on any invoice you produce.
 
I would normally not pay someone until I get a VAT invoice from them.
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What about goods you order off of the internet? - surely you don't need a VAT invoice for those? - Isn't the receipt sufficient?
 
I would rarely buy things for business purposes online.

Generally, if they are Irish suppliers the vat invoice is generated on payment.

Brendan
 
We are the opposite, we would do the vast majority of our business online, both buying and selling. Maybe our business lends itself better to this, for us it's easier to shop around.

I am genuinely interested though in why people are so worried about getting invoices. We would email people their receipt, which seems to be fine for 9 out of 10 customers, but some insist on an invoice as well. Some even want it posted!

Just wondering why this is? Is there some statutory reason?
 
leghorn said:
I am genuinely interested though in why people are so worried about getting invoices. We would email people their receipt, which seems to be fine for 9 out of 10 customers, but some insist on an invoice as well. Some even want it posted!

Just wondering why this is? Is there some statutory reason?
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Of course. For a VAT registered customer you cannot claim VAT input credit on anything other than an invoice. If you want the VAT credit you have to be in possession of an invoice from the supplier, paid or not that doesn't matter.
 
Brendan said:
Is there anything to stop me generating the invoice on their behalf and paying them?

Could we generate a "credit note" from us to them and send the payment with it?

Brendan
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The "credit note" from you is not a good idea Brendan. You would then have to include that as a minus in your sales, which is not at all what the transaction is about as it is a purchase by you.

Regarding you issuing the invoice, if the supplier approves the invoice and re-sends it to you ( by email or whatever) and of course retains a copy for their records then it should be valid. ( provided it contains the necessary statutory information VAT number etc. ) The important thing is that it appears in their records as a sale and accounted for accordingly and in your records as a purchase, which is what it is.

I have encountered situations where say a contractor issues the invoice for the sub-contractor and both retain copies. This might happen where ( as you described) the customer is anxious to have the proper VAT document.
 
"credit note" was the only word I could think of for it, but I don't mean a credit note in the usual sense of the sales ledger.

It would be a "credit note" on the purchases ledger i.e. an invoice.

Brendan
 
Of course. For a VAT registered customer you cannot claim VAT input credit on anything other than an invoice.
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Even if the receipt already has VAT breakdown and VAT number?
 
In our case , one customer gave us a book of invoices and we generate an invoice monthly , including VAT on that invoice .

Its no different than the customer sending us an invoice by post.

When invoice is complete , we simply send a copy to the customer . ( owner of invoice book ) and we keep original
 
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