Home For AAT student members AQ 2013 AAT Level 3 (Level 6 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Question about EU acquisitions

rafukrafuk New MemberRegistered Posts: 8
Hi all

Just one thing I can't understand regarding EU acquisitions VAT control account.

Why is the EU acquisitions tax shown as the same figure in input and output tax sections of the Vat control account which eventually results in Nil? The book says that the business can claim the tax, but how is this possible if the Nil result does not affect really Vat Due.

Also, the same picture is with VAT Return form. The EU acquisitions tax is shown in Box 2 and also in Box 4 which which does not affect the result in Box 5...

Please explain:001_smile:

Comments

  • billdoorbilldoor Well-Known Registered Posts: 129
    They just cancel each other out, you 'pay' the tax but also 'claim it back' so, as you say, the effect is Nil.

    I've no idea why this is as my book didn't say, I presume it's a monitoring exercise for HMRC.
Sign In or Register to comment.