VAT Refund - do I need an invoice?

blue_monkey_2

I am VAT registered and I've received a VAT refund from a courier company as it should not have been charged on the service - however, they just email me 'here is your VAT refund, you should not have been charged etc....' and do not send an invoice with the refund. I've got about 8 of these now.

My questions is - do I need an invoice to back up the refund? I'd have said yes but the company has still not got back to me about it and I do not want to email again if I do not need to.

Thanks.

paddyrg

You could ask for revised invoices showing the correct amounts, you don't get an invoice for something you receive - maybe a credit note.

I would ask for revised invoices myself, or better still, stop paying them the +VAT price if no VAT is due and after agreement to purchase give them a bell asking them to invoice correctly then you will pay

Premier_2

blue_monkey wrote: »

I am VAT registered and I've received a VAT refund from a courier company as it should not have been charged on the service - however, they just email me 'here is your VAT refund, you should not have been charged etc....' and do not send an invoice with the refund. I've got about 8 of these now.

My questions is - do I need an invoice to back up the refund? I'd have said yes but the company has still not got back to me about it and I do not want to email again if I do not need to.

Thanks.

Where a company is frequently charging you VAT in error, you should report this to HMRC.
To make the error once may be considered a mistake, to make the error twice, incompetence perhaps ... but 8 times? :eek:

...If a company falsely charges VAT, whether deliberately or in error, it must pay it to the Government.

If it fail to, it can be fined the value of the full VAT due, plus interest. It must also pay the VAT back....

...you can call HM Revenue and Customs (HMRC) during working hours to check, on 0845 010 9000. If you suspect fraud, you can call HMRC on 0800 595 000.

http://www.moneysavingexpert.com/news/reclaim/2011/01/how-to-avoid-duping-by-vat-fraudsters-

More info direct from HMRC about errors on VAT invoices here:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_CL_000077#P53_3146

paddyrg

Premier wrote: »

To make the error once may be considered a mistake, to make the error twice, incompetence perhaps ... but 8 times? :eek:

Excellent point - VAT fraud costs us all. And 8 times looks like they're VATting routinely, but if as suggested they should not be, then that looks like a problem

JasonLVC

Strictly speaking, the right to reclaim input tax (VAT on purchases) is on the basis you hold a valid VAT invoice/credit note.

HMRC will accept other forms of evidence such as a letter, email or clear audit trail of bank account receipts/payments but is too much of a faff for most when a simple invoice/credit note does the job.

Go back to the supplier and request a proper credit note. The problem is two fold. If you were charged VAT you shouldn't have, then you've technically reclaimed VAT you weren't entitled to and so have to pay it back to HMRC.

Likewise, the supplier has paid VAT over to HMRC it shouldn't have and so the only way for them to get it back from HMRC is to issue credit notes to the customer (you).

blue_monkey_2

Thank you for the replies, yeas, I meant credit note, LOL - it's been a long week.

Jason, these are my thoughts entirely. I want to get it right now. I also wondering how the company are dealing with this issue in their accounts departments if they are not sending credit notes out?

In regards to the calling the company and asking them to invoice - I can't. I have to book it online and pay the price shown on screen and they arrange the courier, it is one of the parcel companies that is routinely mentioned on the eBay pages (the service and prices I cannot fault!), they contact me after and tell me they have refunded £x as their system charges VAT on everything and they are working hard to change that - however, that does not help me.

I will contact them again - I do not want to involve HMRC really, but I want to ensure that my account records are correct. How they are getting round it in their accounts department, I have no idea, I cannot believe they are issuing invoices with the VAT stated and then just amending their records manually without giving the customer a credit. I have got another 2 parcels to send and the same is going to happen, I get charged then they refund me by email.

Jason, I have not reclaimed any of it yet so I am fine with this for now, I started using them after my return was due and it's not due in again til end of May so I have time to get it sorted. I thought I did need a credit but wanted to be certain before I started complaining again and I did not want to go to HMRC and get them in trouble if this can be solved easily.

Thanks for your help.

JasonLVC

http://www.hmrc.gov.uk/manuals/insmanual/ins12706.htm

It is possible for the supplier to issue a credit note without VAT as the logic is that its all neutral for both parties, but a credit note still needs to be issued, albeit not showing VAT. You have nothing at all to reference in your accounts.

Suggest you send above link to your supplier, it may help?

blue_monkey_2

A wonderful link, thank you for all of your help Jason, I will get onto this tomorrow.