Registering for VAT invoices whilst pending VAT number

[Termeek1]

I’m about to register for VAT, but will need to invoice for services before i get a VAT number.

I understand that in QF, I cant invoice for VAT until i have a VAT number and have changed the account to VAT
I invoice quarterly in advance for most projects

Can I,and how can I add the VAT charge for the services about to be delivered if /i dont have a VAT number.
?
also how do I add the VAT number to the current invoice Template so that it shows on our invoices
thanks
Teresa

[ian_roberts]

@Termeek1

Can I,and how can I add the VAT charge for the services about to be delivered if /i dont have a VAT number.

You can’t.

Register for VAT

While you wait

You cannot charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period.

You should increase your prices to allow for this and tell your customers why. Once you’ve got your VAT number you can then reissue the invoices showing the VAT.

You initially invoice with the net at the inc-VAT price and zero VAT, then once you have a VAT number you credit note the original invoices and re-issue them with the real net/vat breakdown.

[ian_roberts]

Of course this depends on your effective date of registration - if you’re registering now because you’ve hit the threshold in July then your EDR is likely to be 1st September so you don’t charge VAT before then anyway, and you’ll have your VAT number in plenty of time. If you’re registering voluntarily, or you hit the threshold in June but only registered last week then that’s a different matter.

[Termeek1]

thanks for both answers. We will be signing the contract in a week or so, and invoicing for the first quarter, but i understand we would still be charged VAT by HMRC on that invoice. so would need to be able to claim it back from the client.

[ian_roberts]

Yes, what HMRC themselves suggest is that you explain to the client what is happening (maybe send them a copy of the confirmation from HMRC saying you have applied to register for VAT), and you initially invoice them at (say) £1200 net with no VAT applied, and they pay you £1200. Once you have received your VAT number, you credit that £1200 invoice in full and issue a replacement invoice for £1000 net plus £200 VAT, which they can then use to claim back the £200 VAT on their next return in the normal way. They don’t owe you anything further at that point.

If they really aren’t prepared to pay the £1200 in full without a VAT invoice then I suppose you could initially invoice them for just £1000 with no VAT on the understanding that you’re going to cancel it and send them an amended invoice for £1000+VAT later, and at that point they’ll need to pay you the remaining £200.

The basic point is that you are not allowed to itemise VAT on an invoice unless and until you have a VAT number.

[Termeek1]

thanks Ian that is helpful