Reporting VAT
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VAT reports
> Accrual and cash reporting
Accrual and cash reporting
There are two methods of accounting for VAT—accruals and cash. It is important that you choose the VAT reports appropriate for your VAT accounting method.
Accrual accounting for VAT
With this method you pay or reclaim VAT based on the invoice or purchase date. For example, if you issue an invoice to a customer in one VAT return period but do not receive payment until the next period, VAT is payable in the period that includes the invoice date, not the period when the customer paid.
If you use this method, use the
VAT Summary
,
VAT Detail
and
VAT Return
reports.
Cash accounting for VAT
This method allows you to account for VAT once the payment has been received or made. It can only be used if you have permission from HM Revenue & Customs.
For example, if you issue an invoice to a customer in one VAT return period but do not receive payment until the next return period, VAT is payable in the return period you received payment, not in the period during which the invoice was issued.
If you use this method, use the
VAT Summary – Cash
,
VAT Detail – Cash
and
VAT Return – Cash
reports.
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