VAT Pre Registration purchase tax

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Hi I am having a very long and extremely blonde day today, Can anyone tell me how I journal in pre registration VAT claimed. Current VAT liability £5886, having calculated pre reg amounts to claim the actual amount to pay is now £3794. I cannot think anymore how I go about this. I have claimed the VAT on Assets and equipment over the last 3 years.

Grateful for any help available.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Pre Registration purchase tax

    I have those days as well!

    Dr VAT account
    Cr Asset account(s)

    In effect, if you think about it logically instead of the asset having cost say £1,175 it will have only cost £1,000.

    Hope this helps.

    Claudia

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Pre Registration purchase tax

    Thanks Claudia, that makes sense but then the Asset Register in the Balance Sheet would need to show a note for the change in balance, wouldnt it? Also as some expensed equipment purchased prior to registration is now being claimed, that would be an expense in a prior years accounts, crediting the vat element now would affect this years accounts only, by more than the vat element accrued in this year. Does that make sense to you?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Pre Registration purchase tax

    Yes - you will need to make yourself a detailed note about what you have done and adjust the balances accordingly - be careful though with the capital allowances when it comes to tax.

    Claudia

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