I am uncertain as to whether the rules for VAT voluntary disclosures also apply to input VAT suffered on an invoice received late from a supplier.
I am uncertain as to whether the rules for VAT voluntary disclosures also apply to input VAT suffered on an invoice received late from a supplier.
My company is involved in complex refinancing arrangements that involve large value transactions and, because of their nature, it is an unavoidable fact that the related VAT invoices can be issued several weeks after their tax-point. We are therefore often faced with a situation where an invoice (on which the input VAT exceeds the £2,000 voluntary disclosure threshold) is received after we have filed the VAT return for the VAT period in which its tax point falls. Accruing for this input VAT in the correct VAT return is considered to be too risky a procedure to consider.
There seems to be a widespread belief that input VAT can in practice be recognised in the VAT return period in which the invoice is received, presumably because the £2,000 threshold is rarely breached. However, it would be very useful to know what the correct procedure is where the amount of input VAT exceeds £2,000. It would obviously be very useful just to reclaim the input VAT in the normal way in the (subsequent) VAT period in which the invoice is actually received. If this happens, am I potentially storing up non-disclosure problems for the next VAT audit?
Readers' observations would be welcome.
(Query T15,898) – LBI.
