Commentary

V7.477 Bad debt relief—VAT only invoices

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.477 Bad debt relief—VAT only invoices

Part V7 Tax planning | Commentary

V7.477 Bad debt relief—VAT only invoices

A question that sometimes arises in late registration cases is whether the business should issue VAT only invoices in an attempt to recover the VAT which they should have charged, in some cases several years previously. The alternative is for the business to treat the payments it has already received as including VAT and account for output tax accordingly.

The answer to the question will vary depending on the facts of each case but it will usually be appropriate to consider issuing VAT only invoices in situations where the customers can recover VAT and there

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