Accounting for Mixed VAT
T.C.
Registered, Tutor Posts: 1,430 Beyond epic contributor 🧙♂️
I have just taken on a new client who sells both standard and zero rate items, but does not separate the sales - they are a market stall with no cash register.
The way they are working out the VAT on sales is as follows: Total sales (zero rated purchases, plus mark-up, ie sale price) = sales including VAT. This figure is then used to work out the total VAT payable. Do you understand what I am saying - hope so. :001_unsure:
I think it makes sense, but have never used this method. Do you think this is acceptable or should I get VAT to approve it?
The way they are working out the VAT on sales is as follows: Total sales (zero rated purchases, plus mark-up, ie sale price) = sales including VAT. This figure is then used to work out the total VAT payable. Do you understand what I am saying - hope so. :001_unsure:
I think it makes sense, but have never used this method. Do you think this is acceptable or should I get VAT to approve it?
0
Comments
-
Hi,
I also have a new client, who does not record different vat rates on sales. I have been doing a research for the past week as I never heard before about vat for retailers.
You should read Retail vat schemes on hmrc web or follow the link. Open notice 727/4.
Your client must have been using either aportionment scheme 1 or 2.
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000146&propertyType=document
I hope this helps
Good luck:thumbup1:0 -
As Lina says, have a look at the apportionment schemes. The description you give is a bit mixed up. I think you will probably find that scheme 1 is the best to use. Give me a shout if you want any help with it, I use scheme 1 myself for a newsagency.0
-
Thanks, I will read it and get back to you with any queries. Many thanks. :thumbup1:0
