VAT on installments, please help.

logie28

Hi,

I have recieved a bill for an home information pack, payment was deferred till the house was sold or after 9 months if the house did not sell. #

I recieved a bill of £450.00 + VAT a couple of weeks ago,

I and the estate agent have agreed to cover this payment with monthly installments, 4 at £100 and 1 of £128.75


My question is, will i have to pay the vat on this agreement at 17.5% or 15% .

either way I'm happy to pay, would be a bonus if it was 15% though.

Mikeyorks

Depends on the tax point ... which I suspect was when you were billed a couple of weeks ago. So it will be 17.5%. But the difference is less than £10 .... so it's not vast in the scale of house selling (or not selling .. as I'm in the same boat with an Exor property at the moment!)

L-train

VAT is charged according to the tax point, which is the earlier of:

• date goods/services are supplied
• date payment is received
• invoice date

So, unfortunately, it looks like you're stuck with 17.5%.