VAT treatment on finance for plant and manchinery
A client has obtained finance for tools purchased by the company.
The original transactions was a debit to fixed assets and VAT, and a credit to the creditor which was cleared by the payment from the bank.
To obtain the finance, my client has been asked to invoice for the full gross value of the tools and take off the VAT as a deposit.
Can someone please confirm what the postings should be for this invoice, should we be posting the VAT on the sales invoice as a credit to the VAT account and include in the next VAT return?
Thank you.
The original transactions was a debit to fixed assets and VAT, and a credit to the creditor which was cleared by the payment from the bank.
To obtain the finance, my client has been asked to invoice for the full gross value of the tools and take off the VAT as a deposit.
Can someone please confirm what the postings should be for this invoice, should we be posting the VAT on the sales invoice as a credit to the VAT account and include in the next VAT return?
Thank you.
0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership