Can't have invoice Ex VAT. True or False?

[Brotherkennyh]

When I took out my Three Business account I was not VAT registered so did not provide a VAT number. I was sure the necessary forms included VAT information.

Recently I became VAT registered. I contacted Three support to provide my VAT number so my invoices could come Ex VAT.

However they inform my that they can't change my invoices to charge me the Ex VAT amount. My only option is to be charged VAT and claim it back later.

While I appreciate this won't leave me out of pocket. I am puzzled. This is honestly the first business that has told me I must pay the inc VAT amount. Has anyone else experienced this?
I also can't see the point asking businesses for the VAT numbers at registration if you are going to ignore their VAT status anyway. I can't help but feel someone has got crossed wires somewhere.

[sc1999]

I think that your wires are crossed. When you register for VAT you become a tax collector for His Majety's government.

In all my years of dealing with VAT I have always paid the inc VAT total on the invoice. This becomes an input and all inputs are taken away from your outputs (VAT on your sales) and you pay the difference to Customs & Excise. If your inputs are greater than your outputs then Customs and Excise refund the difference.

If you are allowing your customers not to pay the VAT element then you will be losing money and the C&E will expect you to pay the money you have not collected. Also, don't the C&S expect VAT info to be uploaded electronically and this can be done from a proper accounts package which will show your inputs and outputs.

This may help: How VAT works: Overview - GOV.UK (www.gov.uk)