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[Urgent] Transaction prior to VAT

We run a retail business, one of our customers placed an order somewhere in November 2017. We are delivering the product now, should we be charging VAT?

Dubai | 👁 1098 | Posted April 18, 2018 | Share on Facebook | Twitter | Google+

| Modified: April 18, 2018 | Author:

5 Comments

grinningdevil 8 months ago

for 40% there won't be any VAT, whereas 60% of the payment will need to be invoiced again with 5% VAT. You may need to get the your audit team to look at it though

ThePrinceFaz 8 months ago

It's your business and you're generating the invoice. If your invoice is dated post-VAT implementation, then the transaction must be taxed. You could back-date your invoice but that depends on whether you have paid VAT on the goods which you're delivering to your customer or not. TL:DR - if you paid VAT on the cost price of the items you're selling, then logically your selling price should be taxed as well.

theantnest 8 months ago

I made and paid for a major purchase (AED23k for a speaker/ sound system) 2 weeks before VAT. The product was out of stock and delivered post VAT. I had to pay additional VAT because the transaction did not complete before the cutoff :( Basically the seller had to pay VAT to move it out of the freezone, so VAT was applicable.

mysamabb 8 months ago

They paid around 40% in advance in 2017..

QBayt 8 months ago

If they have yet to pay for the item then yes, VAT must be added to the total bill.


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