Show accounts with or without VAT

[VikG]

In my first year I was not vat registered.

I registered for VAT on my 1st day of year 2.

So on my accounts do I put my stock at valuation including vat or excluding?

 

[David Griffiths]

Excluding VAT, but you also deduct the VAT that you've recovered from your cost of sales, so the two numbers balance out.

 

[VikG]

Even though I am not vat registered for the whole period of accounts?

 

[Big Pete]

Even though I am not vat registered for the whole period of accounts?

Just ignore the VAT use all the excluding Vat figures if you had a decent accounts software like Sage it would do it at the push of a button..

 

[VikG]

All VAT has been paid so where would I account for the VAT?

At the date of year end HMRC did not owe me any VAT as I was not VAT registered.

 

[David Griffiths]

Even though I am not vat registered for the whole period of accounts?

But at the year end you will recover the VAT on the stock in hand, therefore reducing its cost to you.

 

[Big Pete]

All VAT has been paid so where would I account for the VAT?

At the date of year end HMRC did not owe me any VAT as I was not VAT registered.

Your question was and i quote below.

So on my accounts do I put my stock at valuation including vat or excluding?

now your into cash accounting . a seperate issue. hey for xmas get a accounting basics book maybe or this thread i have a feeling is going to go on and on longer than the olympics ..

 

[VikG]

So on the basis in year 2 I will eventually get my VAT back I should declare my stock at valuation as net in year 1?

 

[David Griffiths]

So on the basis in year 2 I will eventually get my VAT back I should declare my stock at valuation as net in year 1?

Yes, provided that you show your cost of sales as net.

 

[VikG]

OK thanks.

Just to clarify I am not paying any VAT on my first year goods. So all input and output vat has not been deducted from sales.

The only input VAT I am recovering is the stock value at the date of VAT registration on 1st December 2011. Year end is 30th November 2011.