Claiming VAT on purchase

Steve · 12-03-2016 01:14AM #1

I'm recently self-employed and VAT registered and trying to figure out my first return. I'm registered on a payment received basis, I understand how that all works.

In terms of claiming VAT on a purchase - specifically where the invoice date is in one period but the payment date is in the next - which date do I use when submitting figures to ROS?

I'm thinking it's the date of payment but would appreciate if someone with experience could confirm.

barneystinson · 12-03-2016 01:33AM

Steve wrote: »

I'm recently self-employed and VAT registered and trying to figure out my first return. I'm registered on a payment received basis, I understand how that all works.

In terms of claiming VAT on a purchase - specifically where the invoice date is in one period but the payment date is in the next - which date do I use when submitting figures to ROS?

I'm thinking it's the date of payment but would appreciate if someone with experience could confirm.

The money's received basis is exactly that, it only applies to your VAT on sales.

You claim VAT on inputs on an invoice basis.

Steve · 12-03-2016 01:43AM

barneystinson wrote: »

The money's received basis is exactly that, it only applies to your VAT on sales.

You claim VAT on inputs on an invoice basis.

Thanks.

So, to clarify (sorry, I just want to be 100% sure) if I have a purchase with an invoice date in Feb but payment is not due till March, I still include it in the Jan/Feb return?

barneystinson · 12-03-2016 02:05AM

Steve wrote: »

Thanks.

So, to clarify (sorry, I just want to be 100% sure) if I have a purchase with an invoice date in Feb but payment is not due till March, I still include it in the Jan/Feb return?

Yes. For VAT the default position is that it's all based on the invoice. In some circumstances a trader can elect to account for their VAT on sales on a moneys received basis, but that has no effect on how you account for VAT on inputs, which is always on an invoice basis.

allthedoyles · 12-03-2016 02:15AM

There are different payment terms for creditors invoices , like 30 days from date of invoice , or end of month following month of invoice etc , but all invoices should be processed as per date of invoice .

Steve · 12-03-2016 02:28AM

Super, thanks a mill guys.

Claiming VAT on purchase

Comments