.png)
.png)
I have accrued an expense in a set of accounts of a VAT registered client. This expense creditor is also VAT registered. In this scenario I have the following questions.
Is it correct that VAT only becomes an issue once the creditor raises an invoice for the accrued expense or money paid?
Would an agreement to ‘set off’ a loan my client made years before the ‘creditor’ was engaged for ‘services’ to the client’s business be treated as the payment of money in the ordinary way?
Query 19 438 – Confused.
Reply by Gardener
The tax point will be shown on the purchase invoice
The different rules for recognition of income and expenditure items in particular periods for different purposes can be confusing particularly when the trader has a choice. It used to be the case that a set of accounts should be prepared for...
