Indirect Tax AQ2013 - VAT return correction of errors query

Bean88Bean88 New MemberPosts: 12Registered
Hi everyone,

Have this exam in a few days, have been practicing in the Osborne workbook.

With correction of errors, I'm clear as far as an previously understated input tax should be added to box 4 of the return (and on the debit side of the VAT control account).

Likewise, if output tax has previously been understated this should be added to box 1 and a credit on the VAT control account.

However when it's an overstatement, the way Osborne have done it is inconsistent; sometimes they minus an understated input tax from box 4/the debit side and sometimes they add it to box 1/credit side as an output tax.

I suppose either is correct (although if double entry bookeeping is followed you shouldn't ever minus from the debit side of an account), so which is correct?

The important thing for me to know is the correct way to do this in the AAT assessment I have in a couple of days so any swift responses would be much aprreciated!

Comments

Sign In or Register to comment.