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Hi everyone,
First time I have posted, so please bear with me!
I have a VAT query.....
I have been asked to write off some old balances for a client.
I have an invoice raised for £1000 dated 07.01.2008 - which at the time of issueing was 17.5% vat
I have also a credit note raised for £1000 to balance out the above invoice, dated 31.10.2010 - which has 15% vat
It should be a straightforward balance off amounts, but due to the vat rates being different, it doesn't.
So, my question is, were they correct to raise the credit note with 15% vat (as this was the vat rate at the time of raising the CN), or should the CN have been raised with 17.5% to match invoice?
Second question.....how to correct!
Can I adjust the credit note to 17.5% so they balance out, or were they correct to raise the CN with the 15% vat and the difference will now hit the vat return?
They are cash accounting for vat and the customer who the above relates to is not a vat company.
I have tried to look for the answer on the Gov vat site, but I am struggling!
Many thanks
Liz
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