VAT Corrections

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
If the output VAT is overstated on the previous return and the correction is less than £2000, does the correction get taken away from the output VAT for the next quarter or added to the input VAT?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Corrections

    If you correct the error, it should only affect the original wrong source.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Corrections

    Keep a written record of what you have done, as it will through up an inconsistency on your return.

    Then if you get a call about it, you can state exactly what happened without getting flustered and suffering memory lapse.

    It is hard enough remembering what happened yesterday let alone a couple of months ago!!!

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Corrections

    Thanks for your help. An accountant friend of mine said the same, it should only affect the original wrong error but the book says you should add the overstated output VAT to the input VAT for the next quarter.

    Seemes wierd but there must be a right and wrong way despite the answers being the same. Have my unit 7 sim very soon so don't want to muck it up.

    Cheers,
    Scooby.

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