input/output VAT
hannahh
Registered Posts: 5 New contributor 🐸
which is vat on sales and which is vat on purchases?
i can never seem to remember it as they could both be seen as input and output vat seeing as you either get the money in then have to pay it back out or the other way round
and how can i remember which is which?
cheers
i can never seem to remember it as they could both be seen as input and output vat seeing as you either get the money in then have to pay it back out or the other way round
and how can i remember which is which?
cheers
0
Comments
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output and input vat
Hi Hannah
I think about the invoices you send out and the one which you receive.
Sales invoices you send out of your company to other companies, so they are output tax.
Purchase invoices are received into your company, so they are input tax.
Hope this helps.
Regards
Marg0 -
OUTPUT VAT- VAT on goods or services sold.
DR Cash (or Debtors)
CR Sales
CR VAT Account
INPUT VAT- VAT on goods or services purchased
DR Purchases
DR VAT Account
CR Trade Creditors
SSAP 5: Sales and purchases shown in the P&L EXLUDE VAT
Each quarter the balance on VAT ACCOUNT (output VAT less input VAT) is calculated.1 -
Hi
Is it wrong to say the vat input is a debtor? Because we collecting this money from hmrc?0 -
The best way I remembered which way round they are is
SOPI
Sales = Output Tax and Purchases = Input Tax1 -
Input VAT is a debtor, i.e. recoverable from HMRC (normally by offsetting it against Output VAT which would be a creditor)1
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Is it that the Vat amount to be claimed by hmrc should be entered as a vat input as creditor as at that moment it’s to be paid then after claiming it will be entered as an adjustment on debtors side to reduce vat input creditors that’s my understanding!0
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Output VAT is charged on sales and is a creditor.
Input VAT is suffered on purchases and is a debtor.
At the end of the VAT quarter (or VAT month or VAT year) journal adjustments can be done to offset/reduce the output VAT creditor using the input VAT debtor.0
