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bigduckontax
bigduckontax, Accountant
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I just registered a UK company and do not have a VAT number

Customer Question

Hi. I just registered a UK company and do not have a VAT number yet. I need to invoice a UE company which is VAT registered. How should I proceed? Should I wait first to get a VAT number or I can already invoice. Who pays the VAT?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. This is a reverse charge situation where you charge the customer VAT and immediately reclaim the VAT thus effectively making it a zero rated export. Wait until you get your VAT number and then invoice your customer including their VAT number (or equivalent) on your invoice. On receipt of payment debit cash/bank, debit VAT credit sales credit VAT. There is now no VAT to settle in the next quarterly return. For sales out with the EU you don't need to go through this palaver, they are simply exports and you invoice including VAT, but at 0%. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.
Tks for the reply. The customer fiscal year ends Dec 31. They would like me to invoice now to register the sale in FY 2015. I don't think I can get the VAT number so soon. Does it make a difference?.
Expert:  bigduckontax replied 1 year ago.
Send a pro forma invoice and when you get your VAT number send a formal VAT invoice dated before their year end would be my suggestion.
Customer: replied 1 year ago.
Thank you very much
Expert:  bigduckontax replied 1 year ago.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
I should have mentioned that you will also have to submit an EU Sales List. HMRC will send you one to complete which you only have to submit if you actually have EU sales. A company with which I am associated made one EU sale in the early 80s, yet every month HMRC send a sales list to complete, sigh!

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