Accounting for Mixed VAT

T.C. Registered, Tutor Posts: 1,448
I have just taken on a new client who sells both standard and zero rate items, but does not separate the sales - they are a market stall with no cash register.
The way they are working out the VAT on sales is as follows: Total sales (zero rated purchases, plus mark-up, ie sale price) = sales including VAT. This figure is then used to work out the total VAT payable. Do you understand what I am saying - hope so. :001_unsure:
I think it makes sense, but have never used this method. Do you think this is acceptable or should I get VAT to approve it?


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