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VAT Help

anthony_12canthony_12c Feels At HomeRegistered Posts: 40
Just started working in an accountants and the area of VAT is very confusing and a bit of a minefield.

How do you know when something is VATable, i.e. some companies apply VAT but state it is not a VAT receipt therefore you cannot record the VAT in the accounts.

I realise there is the HMRC website which states the VAT but can anyone help, perhaps with suggestions of a good guide book or reference site?

Thanks

Comments

  • Michelle SMichelle S New Member Registered Posts: 13
    Vat

    Re your query besides treatment of non VAT invoices and subsequent VAT receipts what is your primary VAT concern?

    Non VAT Invoice = posted as outside the scope of VAT. Net cost to expense code, vat element to a VAT receipted account if one exists (if not code also to expense code at present) and if you are aware that a subsequent VAT receipt will be issued (if company has a VAT registration number they must do this).

    VAT receipt received = post a journal from the VAT receipt code (expenses code)to the VAT payable code for the value of the VAT.

    Any other questions quite happy to attempt to answer
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    J

    How do you know when something is VATable, i.e. some companies apply VAT but state it is not a VAT receipt therefore you cannot record the VAT in the accounts.

    If you get this, it will likely be a proforma invoice, meaning that once it has been paid, an actual VAT invoice should be issued, allowing you to reclaim the VAT.

    This moves the tax point to the date of payment, as opposed the invoice date, meaning that the seller doesn't have to account for VAT on the invoice if the proforma goes unpaid for a long time.

    If it's not a proforma, you're well within your rights to contact the seller to ask for a real VAT receipt (e.g. in petrol stations you often need to ask for a VAT receipt).
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