Tx notes fa22 Final

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(e)
Because VAT is a self-assessed tax, HMRC make control visits to VAT registered traders. The 
purpose of a control visit is to provide an opportunity for HMRC to check the accuracy of VAT 
returns.
(f)
A business may choose to submit monthly returns but would only do so if it received regular 
VAT repayments. This would arise where the business had standard rated purchases and 
expenses but made zero rated sales and hence always had more input tax than output tax and 
therefore would claim a repayment. 
(g)
If a trader’s VAT liability exceeds £2,300,000 over a 12 month period; they must make monthly 
payments on account of the VAT liability.
6.
 
VAT Invoices 
A VAT registered trader making a supply to another taxable person must issue a VAT invoice within 
30 days of the relevant tax point. A VAT invoice must contain certain information.
Illustration 4
Daffodil Ltd only sells goods, and at present issues sales invoices that show (1) the invoice date and 
invoice number, (2) the type of supply, (3) the quantity and a description of the goods supplied, (4) 
Daffodil Ltd’s name and address, and (5) the name and address of the customer. The company does 
not offer any discount for prompt payment.
Daffodil Ltd wants to know the additional information that it will have to show on its sales invoices in 
order that these are valid for VAT purposes.
The following information is required:
๏
the VAT registration number; 
๏
the tax point; 
๏
the rate of VAT for each supply; 
๏
the VAT-exclusive amount for each supply; 
๏
the total VAT-exclusive amount; 
๏
the amount of VAT payable.

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