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Agency asking for me to change August invoice to 21% vat

  • 10-09-2020 1:33pm
    #1
    Parawata
    Registered Users, Registered Users 2 Posts: 21 ✭


    Hi, I'm a self employed ltd company contracting through an agency the last while. I submitted my last invoice for Aug at the start of Sept and just got a response from them asking me to change the vat from 23 to 21% citing the vat rate change applicable from the 1st of Sept.

    Am I correct in thinking the vat rate applied should be for the billing period and not the date of submission?

    Any clarification more than appreciated. Cut off on invoice submission is today so they've really left it til the last minute to request this. If I don't get back to them today I won't get paid.

    Thanks


Comments

  • #2
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    The VAT rate should always be that at the date of the invoice. So 21% is correct.


  • #3
    melchior1951
    Registered Users, Registered Users 2 Posts: 57 ✭✭melchior1951


    It depends if you're accounting on invoice basis or on moneys received: https://www.revenue.ie/en/vat/vat-rates/what-happens-when-the-vat-rate-changes/index.aspx


  • #4
    Parawata
    Registered Users, Registered Users 2 Posts: 21 ✭Parawata


    melchior1951 wrote: »
    It depends if you're accounting on invoice basis or on moneys received: https://www.revenue.ie/en/vat/vat-rates/what-happens-when-the-vat-rate-changes/index.aspx

    Thanks for that. Had a read and to be honest I'm not sure. I'd have assumed it's invoice based as I am on a long term contract with one client that last number of years. The only thing that changes from time to time is the agency that wins the contract.

    I issue an invoice monthly to the agency, normally at the start of the following month.

    Cheers


  • #5
    melchior1951
    Registered Users, Registered Users 2 Posts: 57 ✭✭melchior1951


    Do you file your VAT returns yourself? Then you should know. Otherwise ask your accountant. The default is invoice based, but most small business opt for moneys received when registering for VAT.


  • #6
    Parawata
    Registered Users, Registered Users 2 Posts: 21 ✭Parawata


    Via my accountant. I couldn't get hold of him hence asking here. I'm invoiced based as I thought. Turns out it was down to the date in my invoice being in the description rather than a separate field so agency said as it was submitted at the start of September the vat amount is 21%. Bit of a technicality but apparently they can say its not dated for August even though it's in the invoice name and description because its not explicitly stated in its own field.


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