EDF Energy are overbilling VAT - BEWARE!!

Bark01

Premier wrote: »

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_001543&propertyType=document

If you look at the whole section it does say that retailers can round up or down in section 17.6. Section 17.5 which you have posted relates to invoice traders only.

I have no idea what the definition of invoice traders is though so you still may be right.

17.5 Calculation of VAT on invoices – rounding of amounts

Note: The concession in this paragraph to round down amounts of VAT is designed for invoice traders and applies only where the VAT charged to customers and the VAT paid to Customs and Excise is the same. As a general rule, the concession to round down is not appropriate to retailers, who should see paragraph 17.6.

17.6 Calculation of VAT at retailers

Most retailers account for VAT using a retail scheme. If that is the way you account for VAT, this paragraph does not affect you.
Retailers are increasingly using sophisticated till technology to identify the VAT due on each transaction and issue an invoice. If you do not use a retail scheme, but instead calculate VAT at line level or invoice level, you must not round the VAT figure down. However, you may round (up and down) each VAT calculation.

Premier_2

An invoice trader is someone that issues an invoice.

A retailer is someone that sell stuff to customers without an invoice e.g. a shop.