Fixed Assets register........

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hi, i am a little confused... when you are putting a new asset on the fixed asset register from and invoice, do you post the total inclusive of VAT ? i try to ask my teacher but she tries to humiliate me in front of the class so i have given up asking her LOL.... any help appreciated. :oops:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Fixed Assets register........

    If you are able to claim the VAT back for whatever reason, then no, otherwise yes.

    IMHO
    Adrian
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Fixed Assets register........

    Hi Sam,

    In general you wouldn't include the VAT on the fixed assets register as it can be claimed back and does not form part of the cost of the asset. The principal exception is the purchase of a motor car (but not a van) where VAT cannot be claimed back - in this case the price including VAT should be entered in the FAR.

    Chris - who thinks your teacher needs a good talking to :x

    P.S. Don't you hate it when someone posts the answer while you're in the middle of composing a reply :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Fixed Assets register........

    And as far as I understand it it gets even more complicated - as you can claim back VAT on motor cars that used in a car pool and not taken home or solely used by one person.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Fixed Assets register........

    right ok thats cool so.... if say a company bought a computer they would enter it onto the Fixed Assets register without VAT included as they can claim it back, but on a motor car which you can not claim VAT on then you would include the VAT on the fixed assets register?
    My god i think i am understanding this..... !?!?!?

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