Time Limit for VAT Refunds to Customers

Hello, We are a foreign entity registered for VAT in the UK because we render electronic services to customers. We seek guidance on the following case. A customer approached us regarding an invoice from last year and requests us to change it to take into consideration that the customer is VAT-registered in the UK and has a valid tax registration. At the time of purchase, the customer didn’t identify themselves to be a B2B-customer, which means they received an invoice including UK VAT. Our question is: how far back into the past are we allowed to change and/or cancel our invoices in such a case, if at all. Is there a time limit, let's say 6 months or 1 year? We thank you in advance for your help.

Hi CB Taxteam,

You can amend invoices and correct errors up to 4 years in the past so if you are satisfied that the company was VAT registered at the time the supply was made you can issue a credit note for this supply and recover the VAT which you paid to HMRC.
I would recommend keeping evidence in your records to show that the company were VAT registered at the point of your supply to support the supply being subject to the reverse charge by your business customer.

Thank you.