New 21% VAT Rate & Work Completed - Invoicing Query

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24601

Registered User
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What is the correct approach in the following scenario?
I charge my clients on a daily rate basis with an SLA for X amount of days per annum. Depending on the nature of the SLA I bill quarterly or less frequently on an ad-hoc basis when certain projects are completed. I have a few projects that completed on 30/09/2020 and I'm preparing my invoices. Do I charge the 21% VAT rate to the full amount or should I charge 23% on the billable days pre-dating 01/09/2020? The invoices cover either the quarterly or six-month period ending 30/09/2020.
 
All of our suppliers charged the vat based on the invoice date and not when the service was provided and i think thats the right thing to do.
 
bbari1 said:
All of our suppliers charged the vat based on the invoice date and not when the service was provided and i think thats the right thing to do.
Click to expand...

Thanks. Do you think that's the morally right thing to do or is it the legally right thing to do? I'm only interested in the latter!
 
@24601 bbari1 is correct.

Technically when you raise the invoice. Also unless you have elected to be on 'cash received basis' you owe the VAT whether paid or not.

If you changed your arrangements because of the change that might be an issue.

W
 
It is legally required that you charge the VAT rate applicable on the day you raise the invoice.
 
@cremeegg - there is an election possible for the cash receipts basis if you feel like checking.

In any event PRO-FORMA on the invoice has the same effect.

W
 
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