I started freelancing via my own limited company earlier this year. I had some logistical problems setting up a company bank account, which delayed my VAT registration.
So when I issued my first two invoices I didn't have a VAT number and the invoices made no mention of VAT. However, I did inform the client when I sent the first invoice that I would be invoicing separately for VAT when my registration came through.
When my VAT registration came through (with a back-dated "effective date"), I issued a third VAT-only invoice referencing the first two invoices.
However, the client (and their accountants) are saying that because neither of the original invoices "carried a VAT item", they have "no obligation" to pay the VAT on the first two invoices.
Is their understanding correct?