Blogger
Share this content
0
5
1510

Non claimable VAT

Hello

I have a question regarding non claimable VAT.

I have posted entertainment invoices during the year with VAT on them. I have been told that i cannot claim the VAT back on after posting.

I have not claimed the VAT back on the returns.

How do i adjust this on my ledgers. Do i have to post the vat element as a cost to the p/l against the original invoice and correct it on the VAT on the balance sheet?

Hope you can help

Replies

Please login or register to join the discussion.

VAT on entertainment

I would simply increase the entertainment cost by the VAT element. The Direct Tax adjustment, if any, will happen when you do the Year End tax calc,

Thanks (0)

Would that correct the VAT? 

Would that correct the VAT? 

We currently claim back VAT. At the moment the purchase tax control account contains the non claimed VAT but the amount received is short of the unclaimed so there is a difference. So the VAT control account is not balancing.

 

 

Thanks (0)

Simple

Debit Entertaining £x

Credit VAT control £x

In future, just post the gross amount of the invoices to the P&L.

Thanks (0)

How about............

posting credit notes to cancel the original invoices and then posting the invoices again, but with the gross amount posted to entertaining?  That would remove the unclaimed VAT from the control account.

Thanks (0)

Thats what i thought just wanted confirmation.

Thanks guys

Thanks (0)