Treatment of VAT when supplier paperwork is missing
Eva D Maytree said
Tue Sep 6 14:32 2022
Hi,
there seems to be conflicting advice from the various accountants I work with (I'm a freelance bookkeeper) as to the correct VAT rate to use when a receipt/bill is missing from a UK-based supplier, and won't be able to be found.
For example, a purchase of fuel is being coded by one accountant as ZR and the other as carrying 'No VAT' (in Quickbooks & Xero). Normally this supply would carry VAT but in the absence of supporting paperwork I wouldn't apply it. I don't agree though with using the 'No VAT' rate as the transaction then doesn't appear on the VAT return at all.
Would appreciate your thoughts :)
Eva.
Shamus said
Tue Sep 6 15:55 2022
Surely thats correct.
If there is no paperwork then the transaction never happened so the only place it can go is to the DLA..... It's certainly incentive for them to ensure that next year they have every bit of paperwork!
Truemanbrown said
Fri Sep 16 23:58 2022
In HMRC VAT Internal Manual, there is some discretion allowed to HMRC staff if they find that there is no valid VAT Invoice.
Hi,
there seems to be conflicting advice from the various accountants I work with (I'm a freelance bookkeeper) as to the correct VAT rate to use when a receipt/bill is missing from a UK-based supplier, and won't be able to be found.
For example, a purchase of fuel is being coded by one accountant as ZR and the other as carrying 'No VAT' (in Quickbooks & Xero). Normally this supply would carry VAT but in the absence of supporting paperwork I wouldn't apply it. I don't agree though with using the 'No VAT' rate as the transaction then doesn't appear on the VAT return at all.
Would appreciate your thoughts :)
Eva.
If there is no paperwork then the transaction never happened so the only place it can go is to the DLA..... It's certainly incentive for them to ensure that next year they have every bit of paperwork!
In HMRC VAT Internal Manual, there is some discretion allowed to HMRC staff if they find that there is no valid VAT Invoice.
You can find a link to the manual here.