Home For accounting professionals VAT
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. 💚


VAT treatment on finance for plant and manchinery

DawnyDawny Settling In NicelyMAAT, AAT Licensed Accountant Posts: 60
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.
Sign In or Register to comment.