VAt returns - urgent

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:29AM in AAT student discussion
I have a quick query. If a business has an invoice dated during the current vat period, but it hasn't been put through their ledger yet, do you just add the vat to this quarters return or do you have to do an adjustment on the next quarters return?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAt returns - urgent

    Surely I would think it depends on whether they are cash accounting or not. If they are cash accounting then it wouldn't need to be declared until the invoice has been actually paid
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAt returns - urgent

    not too sure myself but seeing urgent & sitting next to the FC prompted me to find out & here goes,<BR><BR>if its a sales invoice it needs to go through on the return your doing but if its a purchase invoice you can leave it & do it at a later date.<BR><BR>hope this helps the explanation he gave me lasted about 5 minutes & ive got it in to 2 lines, so if you need clarity, let me know your e mail address & ill ask him nicely to jot a few lines down.<BR><BR>Craig<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAt returns - urgent

    if a business is standard vat accounting then they are accountable for the sales tax on their sales invoices at the date of the tax point on the invoice, they may also reclaim the purchase tax on their supplier invoices at the tax date.<BR><BR>If they are on vat cash accounting they are not accountable for the sales tax until that sales invoice has been paid. they also cannot reclaim the purchase tax until they pay that supplier invoices<BR><BR><BR>As a general rule aat questions are usually standard rated as vat cash accounting is for smaller businesses whose profits are under a certain amount . aat questions allways seem to involve a large number of 00000000

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