Delay in VAT Registration Processing by HMRC
We have noticed that it is currently taking longer for VAT numbers to be issued by HMRC following registration.
However, you should receive your VAT registration certificate within 30 working days from registration, whereas previously the VAT number was being issued sooner.
Whilst you are waiting for your VAT number, you must charge VAT on your sales from the ‘effective date of registration’. You can also reclaim VAT on items you have purchased from this date.
You cannot include output VAT on your sales invoices until you get your VAT number, so you should increase your prices on your sales invoices to account for the VAT you will need to pay to HMRC .
After you get your VAT number, the invoice should be reissued showing the full amount including the VAT.
e.g. You provide goods to a client for £10,000.
You initially raise an invoice for £12,000.
Once you receive your VAT registration number, the invoice is re-issued for £10,000 plus VAT (£12,000 gross).
Your customer does not need to make an extra payment to you, but they can then reclaim the additional £2,000 VAT on their next VAT return.
For Government Guidance, please see https://www.gov.uk/register-for-vat/how-register-for-vat
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