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Loan account posting - cash accounting

VAT Cash Accounting

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Company A is owed £60k from Company B, which is a connected company.

Company A provides services to Company B totalling £48k. My question is, no money is going to be exchanged between the parties because the amount due will contra against the loan balance between the entities reducing the debtor to £12k, but does this transacation count as a payment for VAT Cash accounting purposes and therefore the VAT can be reclaimed by Company B.

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RLI
By lionofludesch
04th Oct 2018 16:19

I vote Aye.

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By andy.partridge
04th Oct 2018 22:15

Do you mean ‘by Company A’?

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Replying to andy.partridge:
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By Jigs
05th Oct 2018 07:32

Thank you - Edited!

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