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Register for Vat after invoice received but before paying

  • 22-08-2017 12:42pm
    #1
    Frere Jacques
    Registered Users, Registered Users 2 Posts: 206 ✭✭


    Hi there,
    Lets say you want to register for Vat as most of your business is UK exports and all your raw materials are bought in Ireland. You won't exceed the UK Vat threshold.
    Revenue says you can pick a date you want to be Vat registered from. You don't want to pick a date in the past as you don't want to mess around your UK customers but you have a large invoice from a supplier that needs to be paid in 2 weeks. If you pick todays date to be Vat registered from, is it possible to avoid being liable the Vat on the raw materials. The invoice has been issued but the cash has not been paid.
    So in summary, if you are opting for the cash based accounting method, does the Vat liability exist once the invoice is issued or once the payment to the supplier has been made.

    I'd be very grateful if anyone could give me any assistance on this one as I've been unable to find anything on the revenue site.

    FJ.


Comments

  • #2
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    Frere Jacques wrote: »
    Hi there,
    Lets say you want to register for Vat as most of your business is UK exports and all your raw materials are bought in Ireland. You won't exceed the UK Vat threshold.
    Revenue says you can pick a date you want to be Vat registered from. You don't want to pick a date in the past as you don't want to mess around your UK customers but you have a large invoice from a supplier that needs to be paid in 2 weeks. If you pick todays date to be Vat registered from, is it possible to avoid being liable the Vat on the raw materials. The invoice has been issued but the cash has not been paid.
    So in summary, if you are opting for the cash based accounting method, does the Vat liability exist once the invoice is issued or once the payment to the supplier has been made.

    I'd be very grateful if anyone could give me any assistance on this one as I've been unable to find anything on the revenue site.

    FJ.

    Cash basis applies to sales only.
    You have to pay the VAT in the VAT period you receive payment from customers.
    Purchases however are on the invoice basis and you claim input vat in the period in which the invoice falls.


  • #3
    Frere Jacques
    Registered Users, Registered Users 2 Posts: 206 ✭✭Frere Jacques


    Heisenburg81 wrote: »
    Cash basis applies to sales only.
    You have to pay the VAT in the VAT period you receive payment from customers.
    Purchases however are on the invoice basis and you claim input vat in the period in which the invoice falls.
    ****e... :)
    Cheers for that.
    Thanks.


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