Back dating VAT charges

[burton]

I have been paying a companies invoices with out VAT sor some time and recently this company has become VAT registered. This company is now trying to charge me for VAT on invoices I have previously paid. I am guessing that this is not right, can you please confirm this and maybe proide some links/information that I could send to this company.

[vatexpert]

The amount you agreed to pay your supplier at the time of your agreement to buy is the consideration for the supply. Unless there was any specific provision in the agreement for the addition of VAT, you have no obligation to pay an additional amount now.

S. 19(2) of the VAT Act 1994 provides:

If the supply is for a consideration in money its value shall be taken to be such amount as, with the addition of the VAT chargeable, is equal to the consideration.

In simple terms, the agreed consideration is treated as including VAT unless the terms of the contract dictate otherwise.

[Generix]

Although, if the person has had their effective date of registration backdated, and you are fully taxable then I see no problem, pay the money - request a VAT only invoice in respect of these amounts, and reclaim the amounts on your next return.