Forum

• # 79293
• Sun 05 Feb 2012 04:58 PM

Can a person who owns two companys (1 VAT reg 1 not) invoice from the VAT reg company to the non-VAT reg company and issue the invoice from before they were VAT reg so that they don't have to include it in the return? 

Example Company 1( VAT reg) issues a sales invoice for company 2 (not VAT reg) but the invoice is raised in December but they put the date as the 1 August and the money is transfered between companies in the December. I am a bit confused in this as an accountant has said this can be done.

Janet 

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• # 79304
• Sun 05 Feb 2012 08:47 PM

Hi Janet

This is a difficult one without knowing all the facts. If the accountant has said it is ok the it is likely to be ok as they would be versed in all the facts.

The main issue would be the taxable supply date that applies i.e. when were the goods or services actually provided to the company oif it is the case this was back in August then it would be ok however if this is being done with the express intent to deprive tax then this would be tax avboidance which is wholly unaaceptable.

Kind regards Stuart

Edited at 05 Feb 2012 08:47 PM GMT

Edited at 05 Feb 2012 08:47 PM GMT

• Forum Moderator, South East & Greater London Regional Chairman
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• # 79323
• Mon 06 Feb 2012 07:28 AM

Thanks Stuart. It's a tricky one to be honest sometimes I don't know where one company ends and the other begins. And its hard to explain without giving too many details away.

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• # 79327
• Mon 06 Feb 2012 08:23 AM

> Hi Janet

It may help to call the ICB technical helpline as you can be more detailed with them without risking any confidentiality issues.

Kind regards
Stuart
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• Forum Moderator, South East & Greater London Regional Chairman
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• # 79328
• Mon 06 Feb 2012 08:29 AM

Yeah I am going to have too. There's something not right about it all

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