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Awaiting VAT registration details: information when issuing invoices in this situation

It’s a requirement of HMRC that your company accounts for VAT from the date you registered, even if you’re still waiting on your VAT registration number. Your VAT certificate can usually take about four weeks to come through, sometimes even longer.

If you have requested we register you for VAT, then your Crunch account will automatically begin to add VAT to any invoices you raise, and the following message will appear on your invoices until we receive your VAT number from HMRC:

Please note: We have registered for VAT but have not yet received our VAT registration number.

Your invoices will include VAT at the current rate. After we’ve received your VAT registration number, you can see the full VAT breakdown by creating a credit note against the original invoice, then re-create the invoice again.

As soon as we receive your VAT number, we’ll add it to your Crunch account. Go into the invoices you've already sent within the system, then resend them to your client.
This invoice will have the VAT breakdown that both the client and HMRC require. Any newly created invoices will have the VAT number and correct totals moving forward.

To resend the invoice, simply locate your invoice via the 'Sales > Invoices tab' and select the relevant invoices 'Options' menu and then select 'Email'.

It’s important to remember that if a client should question this, you can refer them to the following HMRC notice.

"You must start keeping records and accounting for VAT from the date you become liable to register.”

You might want to increase your prices to include VAT, but until you have a registration number, you must not show VAT as a separate item on any invoice you issue.
You can explain to any of your VAT-registered clients that you will be sending them VAT invoices later. Once you have your registration number you should send them the necessary invoices showing VAT within 30 days.

One solution could be for your client to pay you what they owe you and then pay you the VAT separately at a later stage.

If you have any issues with this, contact your Dedicated Service Team, who can talk you through the whole process.

Last Updated: 25 Oct 2019 09:45AM BST
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