[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 | 👁 1164 | Posted April 18, 2018 | Share on Facebook | Twitter | Google+

| Modified: April 18, 2018 | Author:


grinningdevil 10 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 10 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 10 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 10 months ago

They paid around 40% in advance in 2017..

QBayt 10 months ago

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

Post your Comments