Well, no sensible replies, even though they confirm the rules apply already for telcos...
So my latest email to them :-
OK, to make this simple I have a simple tangible question for HMRC on
this new policy for prompt payment discounts.
I have, today, issued an invoice to a non VAT registered individual
customer for telephony services.
The invoice does not mention VAT as a non VAT registered customer. It
is for £14, but with a £2 prompt payment discount making it £12 if
paid within a time frame specified on the invoice.
Previously the VAT would be on the discounted amount of £12 total, so
£2 VAT. Simple.
With the new policy it depends on the "consideration actually received".
Please tell me what figure for VAT on this invoice you require me to
include in the VAT payable on sales for my next VAT return?
I do not know if the prompt payment discount will be taken or not, and
will not know by the time I have to do the VAT return (unless it is
paid before then, obviously).
The rules you now have state that the VAT depends on the actual
payment made. But I do not know what that will be. Will it be the
discounted amount because paid promptly, or the un-discounted amount
So - what do I put on my VAT return for the VAT element of this
invoice? How much VAT should I pay HMRC in relation to this invoice?
Obviously it would be seriously negligent of HMRC to have introduced
new VAT law and rules without knowing the answer to such questions
before businesses have to implement them, and I am sure HMRC are not
so irresponsible. I am sure you have an answer all ready for me and a
VAT notice/leaflet and web page on the topic.
So, please tell me.
I look forward to your prompt, and formal, reply
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