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Post Info TOPIC: Are invoices a requirement for customers paying automatically?
jsp_1983


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Are invoices a requirement for customers paying automatically?
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We work with Amazon whose associates programme for referred sales pays automatically on a monthly basis (for the previous month calendar). They don't require an invoice for payment to be issued, nor do they generate one. 

I get a feeling that the answer might be that, if it's not a requirement, it's at least 'good practice' (I'm not sure why?).

If I have to or should create an invoice, how should I date its issue? Should I use the end of the calendar period it's issued for? And for historical payments, should I create 'pseudo' invoices, or should I just record the payments received?

We aren't VAT-registered, if that makes a difference.



-- Edited by jsp_1983 on Thursday 24th of October 2013 02:54:43 PM

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jsp_1983


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Noted on the date point - makes sense to me, thanks. So long as the numbers stack up properly, HMRC can't get too picky about it, can they?!

From what you're saying, it sounds like I would only have to create invoices if I was VAT-registered. So there's no 'best practice' consideration for creating them anyway, and I shouldn't have to create them for past payments? That would certainly make things easier for me.



-- Edited by jsp_1983 on Thursday 24th of October 2013 03:46:12 PM

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Sweetman Accounting


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Good question!

I would use the end of month date as you suggest so that the income is recognised in the right month. I did some work with an Amazon associate, not as a bookkeeper/accountant, a while ago and they had the same dilemma although they were VAT registered. From memory Amazon don't pay vat on your referral income as they are technically based in Luxembourg and as such account for the vat themselves under the reverse charge scheme. My acquaintance produced invoices so that he had pieces of paper on a file but he had to show zero vat and state on the invoice it was reverse charge and the vat number of amazon. I am sure the vat experts on here will correct me if I'm wrong!

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David Sweetman

 

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