VAT RETURNS

~ Dean Bloom ~
~ BloomTech Solutions ~

VAT RETURNS
 
 
VAT is a whole subject on it's own. It will take a whole lot more than this site to explain all the "in's & outs" of VAT.

The VAT laws are also changing often, with different rules being implemented frequently.

To look at VAT very basically, you have to think of it as money owed to H M Customs & Excise and money owed by H M Customs & Excise.

There are boxes on the VAT return which have to be completed, and some of it has been for statistical purposes only.

The very basics are as follows:-

OUTPUT TAX & INPUT TAX
 
Output Tax is VAT on sales. In other words, the VAT you charge on normal invoices is payable to you by the customer you are invoicing. They in turn can claim this VAT back (if they are VAT registered and they are allowed to claim this particular VAT back).

You however, have to pay this output tax back to H M Customs & Excise. In other words, the VAT you are charging on your invoices has to be paid by you to H M Customs & Excise.

Input Tax is the opposite of this. VAT on purchases can (in some cases only), be re-claimed by you. In other words, the VAT you are paying out to the person who has invoiced you, can be re-claimed by you.

Once again, this is only if you are VAT registered and you are allowed to reclaim this particular VAT in question.

The net result or difference between the Input Tax & Output Tax is the VAT owed by you or VAT owed to you.

As I have already stated, VAT is a complicated subject, and I could dedicate a whole web site to this topic alone.

Here, I have only browsed lightly on the subject, but there are many free books available which explain in full everything you need to know. Contact the Customs & Excise for more information.


SALES LEDGER
Invoices
Credits
Payments Received
Allocations
Credit Control
 

PURCHASE LEDGER
Invoices
Credits
Issue Of  Payments
Allocations
Account Queries
 

CASH BOOK
Entry of information
Accounting for VAT
Bank Statement Reconciliation
 

NOMINAL LEDGER
Double Entry
Trial Balance
 

FIXED ASSETS
Depreciation
Net Book Value
 

PROFIT / LOSS