If you issue an invoice with errors it can have unfortunate effects for both you and your customer. So here’s how to make sure your VAT invoices are right before they come back wrong.
Make sure the VAT is correct
You should always show the correct amount of VAT on your sales invoices. The VAT amount can be incorrect due to a mathematical error, or the wrong VAT rate can be applied e.g. zero-rated supply treated as standard-rated.
Charge the right VAT amount
If you charge the wrong amount of VAT, you are still responsible for accounting for the higher sum, as you may already know with any dealings with HMRC.
As a rule of thumb, check and confirm WHAT you type WHERE. This most especially applies to VAT and Rates.
However, it can be adjusted through the issue of credit notes or supplementary invoices marked “VAT only”.
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