What counts as VAT?

[jct126]

Hello,

OK this is probably a dumb question, but never the less it has just occurred to me that i don't know the answer???

I am trying to calculate our VAT bill and i am a little confused as to when to claim vat?

For example, most of our suppliers send us an invoice with the vat calculated and the rate of vat... but we also use supermarkets, DIY stores etc, and in most cases, there might be a vat number on the receipt but no breakdown of how much, if any vat, was paid on the products.

So... do i just take the total and work out the vat? not claim any vat for the receipt? or try and calculate what i might have paid vat on and what i probably didnt pay vat on and put that through?

Until now ive only been processing receipts which have the vat calculated on them? is that right?

Thank you for your help

 

[KM-Tiger]

Until now ive only been processing receipts which have the vat calculated on them? is that right?

No.

I suggest you take at look at the VAT notices at www.hmrc.go.uk, where there is an expalanation of the 'less detailed' VAT invoice. You can recalaim that VAT, but you will have to calculate yourself, which is not difficult.

A tip if you use Tesco: the items with an asterisk have VAT charged on them.

 

[jct126]

Ahhh! ok great thanks for that, you can tell i am new to all of this!

 

[KM-Tiger]

No problem, are you using software or trying to do this by hand?

 

[jct126]

Well i thought i should probably get Sage so i went out and got a copy of Sage Financial Suite. It's difficult though because althouhg it says great for restaurants, we don't invoice, and from what i can make out, i would have to put every sales receipt in to get accurate sales info? Never hte less, i guess the answer is that i do have software!

 

[Nicster]

Hi jct126,

You would need to add up all your sales to be able to enter them into Sage, There is an invoice option (not sure which on off the top of my head) where you can just enter the date, amount, vat amount and Customer (you could set one up called Cash) to enter your figures either daily, weekly or even monthly.

It depends if you use a Cash account to pay suppliers out of and need to keep track of this, as this could be set up as a bank account in Sage.

Back to the VAT, take a look on the hmrc website for more info, but look at the receipts for info, like Kent manufacturer said, Tesco receipts have an asterix on, I think B&Q have an A1 against them and someone else has a V. Its just getting to know them.

PM me if you would like further help, perhaps with setting up Sage.

Thanks
Nicola

 

[Rapid Dave]

Tesco will give you a proper VAT receipt, with a breakdown, but you have to ask for it at Customer Services which is a pain. If I buy vat-able stuff from Tesco (ink cartridges etc) I just pull the VAT out myself from the total.