Accounting Plus's VAT Reports

Dealing with VAT Overview > Accounting Plus's VAT Reports

There are two forms of VAT accounting - accruals and cash. It is important that you choose the VAT reports appropriate for your VAT accounting method.

Accrual accounting for VAT

This method of accounting for VAT works by paying or reclaiming VAT based on the invoice date.

For example, if you issue an invoice to a customer in one VAT return period but do not receive payment until the next period, VAT is payable to Customs & Excise in the period that includes the invoice date, not in the period when the customer paid. If this is your method of VAT accounting, the VAT reports that you should use are:

Cash accounting for VAT

This method allows you to account for VAT once payment has been received or made and can only be used if you have permission from Customs & Excise.

For example, if you issue an invoice to a customer in one VAT return period but do not receive payment until the next return period, VAT is payable to Customs & Excise in the return period you received payment, not in the period the invoice was issued.

Accounting Plus does not require you to create transactions in any special way to cope with this method. Instead, the program will pick transactions for the VAT reports based on payments made or received in the reporting period.

If this is your method of VAT accounting, the VAT reports that you should use are:

Click below for the step-by-step procedure:

To use VAT Reports