In The News
VAT on Deposit Payments
From March 2019, HMRC have new legislation which they are now using to recover VAT on deposit payments in circumstances where the customer has not completed the sale but equally has not requested the repayment of the deposit.
In these circumstances the dealer may well have accounted for the VAT on the deposit and then recovered the VAT when treating the deposit as income.
The Revenue are asking a series of questions as per below:
If it does, please proceed to question 2. If it does not, then there is no need to answer the other questions.
If it did, please answer questions 3, 4 and 5. If it did not, please answer questions 4 and 5.
If not, how is the business treating such payments and why? Please provide details.
If so, please provide the details.
If you have received a request from HMRC or are aware that you have received VAT / not paid VAT on deposit income which you have taken to profit.