VAT Double Entry Help

Brian D
Brian D Registered Posts: 15 New contributor 🐸
In my workplace, we operate a partial exemption scheme ie we can only claim a portion of our VAT, so for example, if QTR ONE said out total input vat was 10,000 we could only claim £8,000.

We our total output vat was 11,000 we would have to pay across £3,000 to HMRC.

Part of the journal to reflect the above (that we do here), is to show the input VAT claimable ie £8,000 as income.

Can VAT be posted into income or expenditure or is it within the VAT control account? The only adjustment I know is irrecoverable VAT written off in the I&E.

Thank you,


  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    Hi Brian,

    From your various posts you appear to be having fun:)

    Not 100% sure what you mean with your post but I think that you are talking about accounting for VAT as you go.

    Are you using an accounting software package if so which one?
  • Scalloway
    Scalloway Registered Posts: 10 New contributor 🐸
    Expenditure Net of VAT

    The normal procedure is that expenditure should be posted net of VAT. In assume you will only know what proportion is partly exempt when you do the VAT Return so it could be a tedious process to correct the VAT actually recoverable after the event. In that case I would show the irrecoverable VAT as an expenditure item, rather than VAT recovered as income.
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