Vat Invoice Question

J

johnales

Guest
I Have a query in regards to a VAT invoice I received in early June,
the amount of VAT I have to pay on the invoice is 150 euro.
My question is my VAT 3 form is due to be sent off before the 19th of
July, my two month period being May and June.
The business who has issued me with this invoice has already furnished
me with the piece of equipment I need, and have said that I can pay
them the money for it +vat at the end of July.
Do I take it that I should put down on the VAT 3 form the 150 euro vat for the may/june period since I received the invoice in early june or do I wait until I have paid for the equipment at the end of july.
Sorry if this sounds slightly confusing!
 
Hi johnales, you only claim VAT for VAT you have physically paid over, so going by the information given, it will be relevant to the July?August returns.

That is the same for the supplier, they will not hand over that VAT, until they have physically collected it from you.

Hope that helps.......
 
Hi John

I must disagree with SineWave here.

There are two ways of dealing with VAT -
The invoice basis
The cash receipts basis.

On the invoice basis, you claim VAT on any invoice you have received whether or not you have paid for it. You pay over the VAT on any invoice you have issued, whether or not you have received the cash from the debtor. This is the default way of dealing with VAT.

You can apply to deal with VAT on a cash receipts basis in which case you pay VAT when you receive the cash. You still claim the VAT on the date the goods were supplied to you, whether or not you have paid for them.

So in your case, you can claim the €150 for the goods received in June.

Brendan
 
From the Revenue's Guide to [broken link removed]


General rule on when VAT becomes due 6.1 VAT becomes due, or a liability for VAT arises at the time when a supply of goods or services takes place (see paragraph 6.2) of Chapter 6

An exception to this rule is where a taxable person has been specifically authorised by Revenue to account for VAT on the basis of moneys received (see Chapter 8).
Click to expand...

Traders who may opt for moneys received basis 8.2 The traders who may opt to account for VAT in this way are:-

  • VAT-registered traders whose supplies of goods or services are almost exclusively (at least 90%) made to unregistered persons. This would apply in practice mainly to retail outlets, public houses, restaurants, hairdressers and any similar type of business, or
  • VAT-registered traders whose annual turnover does not exceed or is not likely to exceed €635,000.
Click to expand...
 
Thanks guys, I dont know if this might be relevant but the business who supplied me with the equipment has since dissolved, I presume they will pass
on the VAT that I pay them at the end of july.
 
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