Comments on: How to account for VAT on deposits http://vatark.co.uk/vat/howto/how-to-account-for-vat-on-deposits/ For help with VAT... Mon, 09 Aug 2010 09:33:40 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Robert Killington http://vatark.co.uk/vat/howto/how-to-account-for-vat-on-deposits/comment-page-1/#comment-218 Robert Killington Tue, 26 Jan 2010 10:21:38 +0000 http://vatark.co.uk/vatark/?p=153#comment-218 Hi Phil Sorry for the delay in responding. The standard rule is that you need to issue the VAT invoice for the deposit within 30 days of receiving the payment. Unless your customer is a VAT registered business you may only need to provide a receipt - but that's still paperwork, so why not issue a VAT invoice? The important thing is that you account for the VAT out of the deposit in the right VAT period. For hotels where the reservation is cancelled any cancellation fee that is retained is not subject to VAT, so any VAT that has already been paid can be reclaimed - even if the whole of the deposit is retained. Does that make it clearer? Robert Hi Phil

Sorry for the delay in responding.

The standard rule is that you need to issue the VAT invoice for the deposit within 30 days of receiving the payment. Unless your customer is a VAT registered business you may only need to provide a receipt – but that’s still paperwork, so why not issue a VAT invoice? The important thing is that you account for the VAT out of the deposit in the right VAT period.

For hotels where the reservation is cancelled any cancellation fee that is retained is not subject to VAT, so any VAT that has already been paid can be reclaimed – even if the whole of the deposit is retained.

Does that make it clearer?

Robert

]]> By: Phil Atkinson http://vatark.co.uk/vat/howto/how-to-account-for-vat-on-deposits/comment-page-1/#comment-199 Phil Atkinson Thu, 14 Jan 2010 21:25:40 +0000 http://vatark.co.uk/vatark/?p=153#comment-199 Hi Just to clarify, When a deposit payment is recieved under the imple approach mentioned above i.e after issuing a pro forma do you HAVE to issue a vat invoice? Can you not wait until the service takes place? and just account for the deposit vat on the vat return each period? tks Hi

Just to clarify, When a deposit payment is recieved under the imple approach mentioned above i.e after issuing a pro forma do you HAVE to issue a vat invoice? Can you not wait until the service takes place? and just account for the deposit vat on the vat return each period?

tks

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