Agents have a legal duty to issue monthly statements to principals
In terms of Vat law, you (the agent) have a legal obligation to give your principal a monthly statement that details all the supplies you received on his or her behalf.
If you've forgotten what a principal is, this is a person or a business that authorises an agent to act on its behalf and engage into transactions with third parties that are contractually and legally binding.
When it comes to monthly statements, you have a deadline to meet of 21 days after the end of the calendar month and must have accounted to your principal by this time.
And every month, your report must include details of the following information…
If you're an agent, make sure you include the following info when you issue monthly statements to your principal
The Practical Vat Loose Leaf Service says your monthly statements must have:
What happens when you've given your principal the monthly statement?
When you've issued your principal the monthly statement, he can then use this statement to support his input tax claims.
Note: When selling goods or services on behalf of a principal, give him the all these details so he can also correctly declare output tax.
Knowing how to issue monthly statements to your principal as an agent will help ensure you comply with Vat law.