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TaxTim says: 26 February 2013 at 13:18 It would depend on your VAT cycle - when does it end? If it coincides with the financial year then you still have to pay it over regardless of whether you received the cash or not. Unfortunately VAT works on what the call the earlier of Receipt or Accrual - so payment doesn't matter. If your VAT cycle ends the month after the financial year then you can pay it then. However you are responsible for VAT as soon as you have earned income and received cash. |
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Marco says: 26 February 2013 at 16:46 Thank you, maybe I was not too clear, its not the VAT I am worried about, its the Income Tax on the invoiced but as yet unpaid invoices at year end. Am I committed to paying income tax on monies not received because the invoice is dated in the previous financial year? |
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TaxTim says: 26 February 2013 at 18:21 If it is income earned and invoiced for then yes you will have to include this as income for the year and pay the tax on it in the current financial year regardless of receipt of payment. |
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Marco says: 27 February 2013 at 9:18 thank you! |
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TaxTim says: 1 March 2013 at 11:41 Only a pleasure! |
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