How to account VAT which can't be claimed back.

LisaJe Registered Posts: 10
Hi all,
the UK company has a storage in Lithuania. They are bying some small items etc. from Lithuanian company. The invoice is with 21% Lithuaninan VAT.
How should the UK company account this VAT? Is it GOGS as the goods the VAT is on are COGS. Or it is other expences?

Thank you xx


  • davealucas
    davealucas Registered Posts: 140 Dedicated contributor 🦉
    If you can't recover the VAT then it should just be included as part of the whole expense.
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