Vat only invoice

[Maslins]

My first thought on reading the OP was that perhaps your own company didn't have VAT registration properly in place when sending your first invoice. They therefore dealt with you as a non VAT registered entity. Since then they've realised you were VAT registered at the time, so need to correct their records, in which case easiest way for them would be for you to send a VAT only invoice as they've suggested.

However, some other possible reasons above...so I think you need to clarify what the situation is.

[missinggreenfields]

Four step process:

1) Ask them why they want to do this.
2) Run a credit check on them.
3) Make sure you have business interruption insurance.
4) Hope that they don't disappear with your money.

I'd do all of those concurrently.

[VectraMan]

It could simply be that they aren't yet VAT registered and want to wait until they can reclaim it...

You can reclaim VAT from before you registered.

Sounds more likely they don't want to pay all the bill. But then having an invoice doesn't meant they have to pay all the bill anyway.

[Fred Bloggs]

It could simply be that they aren't yet VAT registered and want to wait until they can reclaim it...

Sounds logical. When the boot has been on the other foot, I have sent invoices without VAT and then two weeks later once I have the certificate, sent VAT only invoices. Not had a problem.

[malvolio]

It could simply be that they aren't yet VAT registered and want to wait until they can reclaim it...

[BrilloPad]

Sounds illegal. And they are having cashflow issues.

If they don't pay up, report them to HMRC.

As others have suggested, ask why first.

[Darren at Fox-Bartfield]

Invoice

Would suggest you get the full invoice in (including the VAT) they will then have to negotiate the payment arrangement, whether it be part now and part later but ask why they want that kind of arrangement. Main point being to get the full invoice in to them in case there are any debt recovery problems.

[Old Greg]

I'm fairly certain that as a VAT registered business you cannot invoice without VAT so their request is a non-starter.

You could choose to offer them an extended payment window but I wouldn't. I'd also agree with the above and start looking for a new contract.

Sound advice as usual. OP, have you asked the client why?

[TheCyclingProgrammer]

I'm fairly certain that as a VAT registered business you cannot invoice without VAT so their request is a non-starter.

You could choose to offer them an extended payment window but I wouldn't. I'd also agree with the above and start looking for a new contract.

[SueEllen]

If a company is asking you to do that it would indicate they are having finance problems so it would be a good idea to leave asap.

[northernladuk]

Yes. Your accountant.

[Rodz]

Hi I am doing some work for a company and they have asked me could I send a separate invoice for the VAT a month later. My Ltd company is VAT registered, does anybody know why this would be and if it is even legal?

Thanks