Unpaid VAT invoice

[lozzy]

Hi guys,

Just a quick question for you RE. VAT - I've recently registered and having informed my client in advance and told this wasn't a problem, I later sent out an invoice for the total due including VAT, quoting my VAT number at the bottom.

Anyhow, the client (who's a recruitment agency who should know better) paid the invoice sum but not the VAT. They didn't notify me it hadn't been paid and when I informed them of their error they insisted I send them a copy of my VAT registration certificate or they won't pay up. I will add that I'm not contractually obliged to do this.

Well it's not a huge deal, but it's rather ticked me off, so just so I know where I stand - aside from quoting your VAT number on your invoice, are you under any additional legal obligated to proove your VAT registered status before a client will pay the VAT?

Any thoughts? Just wondering whether this means I'm going to have to send out copies of my VAT registration certificate everytime I invoice a new client. Also, what happens when a client refuses to pay the VAT on an invoice without a valid reason, is it solely my problem or can I get HMRC on their butt?

Thanks!

[r0bly0ns]

I'm not sure if it's a legal requirement but it's our accountant told us to send copies of the cert with the VAT invoices when we were first VAT registered.

[xoggoth]

They usually do tend to ask for a copy I find.

[Jubber]

When working through an agency I have always been asked for a copy of my VAT certificate.

When working direct with the client, I've never been asked.

[BrilloPad]

of course you could you walk from the contract and sue. but why bother? why not just send them a copy and spend your time doing something more productive.

no wonder the government gets away with treating joe citizen like dirt - too many people concentrating on trivia.

[BrowneIssue]

no wonder the government gets away with treating joe citizen like dirt - too many people concentrating on trivia.

Ouch! Harsh! But most of this annoying detail that we are distracted by comes from the government anyway.



One the one hand we are told over and over to protect our identity.

Then we are told to hand over copies (and sometimes originals) of:

- certificate of incorporation;
- articles of memorandum;
- VAT registration certificate;
- a blank business cheque (yes, I have been asked to do this by an agency);
- birth certificate or passport;
- driving licence;
- utility bills;
- council tax bill

which they cheerfully copy and bung in an unlocked filing cabinet with hundreds and hundreds of others.

This whole "prove you id" thing is causing a huge problem. All that stuff above in thousands of recruitment agencies, plus all the letting agents that do the same.

It must be becoming very easy to commit an ID fraud by getting access to this stuff.



Anyway, the original question: there are people out there claiming VAT and pocketing it. Asking for the VAT certificate saves the client from getting involved in "unpleasantness" later.

[MikeC1408]

Ask for a copy of theirs in return

[NotAllThere]

...aside from quoting your VAT number on your invoice, are you under any additional legal obligated to proove your VAT registered status before a client will pay the VAT?...

.... Also, what happens when a client refuses to pay the VAT on an invoice without a valid reason, is it solely my problem or can I get HMRC on their butt?

No and, I believe, yes, you can get HMRC on their butt.

Why not phone the VAT helpline, and ask their advice? I understand they can get quite intense about people not paying VAT that is on a legally correct VAT invoice.

While I see that those suggesting you just send a copy and have done have a point, sometimes it's immensely satisfying bring agencies to book.

[vhadiant]

They usually do tend to ask for a copy I find.

Same here. It's just VAT registration letter anyway, it's not like all your personal information is plastered all over

[Ardesco]

They have an obligation to check that you are VAT registered before they pay you VAT. The VAT number could belong to anybody, there is nothing to stop you going into Tesco, buying some shopping and then copying the VAT number on the bottom of the receipt and handing it across to your agency.

They could pay to check your VAT number, or they can just ask for a copy of your VAT certificate which is easy for them and doesn't cost them anything.

To be honest it's not worth making a fuss about, all of the information about your company i.e. directors name and address, company address, VAT number, company number, etc. is publicly available anyway. Anybody can get hold of it if they want to.