New Preview Feature - Expenses on cash accounting VAT scheme
News posted by Tommy Chung 1 year ago
After extensive review, we have updated the way VAT on employee expenses is processed on a cash accounting VAT scheme.
Currently, the employee expense (EXP) is included on the return based on the date of the expense. However, with this new feature enabled, the VAT is processed is as follows:
Expense Claim method
When you create a new employee expense (EXP) you will be able to select a VAT rate for each line of the expense. The VAT treatment will be locked to out of scope - this will prevent the employee expense from being included on a VAT return.
As soon as the expense is approved the system will generate an expense claim form (PUR). This expense claim form will include the total VAT liability of the expense. This expense claim form will be included on the VAT return based on the payment date.
Adhoc payments method
This will remain as it currently is.
Approving an expense on the Adhoc payments method does not generate an expense claim form. You will need to either create a bill or a money out transaction for the payment back to the employee.
We are adding this new process in our preview section, which can be accessed in the toolbar at the top of the menu. This will be available to enable/disable with the Preview menu.