I have an invoice for the purchase of a new vehicle which was £4425.53 plus VAT £774.47 so the total amount was £5200.
There was also a buyers fee for £292.77 plus VAT £51.23 so the total amount was £344.00
A new keeper transfer fee for 21.28 plus VAT £3.72 so the total was £25.00
A deposit handling fee for £12.25 plus VAT £2.14 so the total was £14.39
The total amounts of these are £4751.83 plus VAT £831.56 so the total was £5583.39
On that day a deposit of £980.00 was paid by cheque which was added to the accounts for November. The rest was paid by credit card which incurred a fee of £114.72 plus VAT £20.07 so the total amount was £134.79.
How on earth do I work out the VAT for the cheque payment and credit card payment as the cheque was put on Novembers accounts and the rest to come off the card goes on decembers accounts. Would I record the VAT to be included in the VAT return? If so what would the amounts be.
VAT is calculated on invoices not on payments. Therefore enter the purchases/fees net plus vat then record the payments from the bank a/c and the cr card a/c gross.
