Unusual customer request!!!

[Dave-A]

I charged UK VAT to an overseas customer who is based in the EC as the goods were delivered into the UK, where they stayed.

The customer wants us (18 months later) to credit and reinvoice the goods for a fairly trivial reason.

I suspect they are out of time recovering the VAT and want a new invoice to overcome this.

Should I agree?

[Akudzin]

If you can provide proof of removal from the UK you can zero rate providing your customer has another valid EU VAT Number not equal to the UK and your Customer is not from the UK.

Else you are liable for the VAT on the goods.

You could consider taking a deposit equalt to the VAT and return it when you have the necessary proof.

[Dave-A]

Hi thanks for this, but bear in mind the goods stayed in the UK, so charging UK VAT was correct. I believe the customer will have wanted to reclaim via an 8th directive reclaim mechanism and they may be out of time, assuming the invoice date is the relevant date. By crediting and re-invoicing, we create a new document dated today which they may re-submit for a reclaim. I'd be surprised if this was permissible.

[section 44]

Any credit note/invoice needs to reflect the commercial reality.

If the customer merely wants a re-dated invoice but the supply is unchanged then no, you cannot do it.