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Hi,
I need clarification and guidance for the following question:
Can a business charge VAT on its old invoices that they charged to customers, If a business is going to register on March 1st, 20×1 (let say) ?
If yes, then how ? Do they need to renegotiate the contract with the customers or with vendors ?
Kindly need your practical clarification and guidance as per HMRC ?
A business will not charge VAT until it is registered for VAT – if it should have been registered for VAT then it must also pay over the VAT that it should have collected on sales made during that period (20/120 x invoice value)
Whether the business can issue a credit note for the old sale and issue a VAT invoice now for the taxable supply will be then be whether or not it can agree such an arrangement with the customer which will not happen if the customer is an individual
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