Vat on prepayments

Question asked by Tracey Matthews 2 years ago

Hi, When adding items on prepayments, it advises that it should be 'outside of scope' for VAT, so my purchase invoice (that has 20% VAT) has been logged without VAT, I was expecting when the releasing the amount to the expense account each month (in this case - computer expenses) that I could account for the 20% VAT, so I ticked 'purchase VAT' on the journal. It does appear on the VAT return as a manual entry, but doesn't include the 20%?

Should the Prepayments VAT section be changed to the relevant rate, despite the warning message that appears on the bill entry? Thanks.

Reply to this question

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are