Re: Sage 10 - are VAT returns wrong?

In message <gcesr2l8vh8lohpn7kl5qgp8drhig7861d@xxxxxxx>, nobody@xxxxxxxxxxxxx writes

Nogood Boyo <NogoodBoyo@xxxxxxxxxxxx> wrote

Read the guidance. An invoice from a reputable agent should make it
clear that their invoice is merely for reimbursement and that it is not
valid for input tax purposes.

Fair enough; how do all the other (countless thousands) businesses
handle this situation?

Sage is the most commonly used accounting program. It has no provision
for suspending a particular purchase invoice from VAT claim-back until
somebody has told it that a particular piece of paper from C&E has
turned up.


Yes it does - you have to think outside the <VAT> box

There are two options - either use the <T9> default code on a temporary basis and change this to <T1> when VAT is paid.

Or enter the purchase using a Sage VAT code which is not incorporated in the VAT Return (say T6).

When your VAT payment is made to C&E/courier you merely journal entry the purchase and VAT from <T6> to <T1>.

The former method quarantines the transaction prior to VAT Return whereas the latter will include the purchase price but not the VAT in the VAT Return.
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Keith replace nospam with ilf0rd
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