when is VAT due on deposits received in 2014

[dillons]

Hi,

Can anyone tell me when the VAT is due to be paid on deposits that were received in 2014 for work that won't be carried out/completed until 2015? Balance will not be paid until 2015.

Cash receipts basis of VAT so I'm guessing the VAT is due on the deposit received in 2014 and then will be due on the balance in 2015 but someone has told me that VAT is not due on any of it until work is complete i.e. 2015

Anyone know which is correct?

Thanks in advance,
dillons

 

[WizardDr]

My understanding is that VAT is due on the deposits as if they were sales which is logical when you think of it.