I am a little confused regarding which date I need to use when inputting data into the system as some invoices have 2 dates on them e.g.
Tax Point
&
Invoice date
Sometimes both these dates fall in the same month therefore I guess this would not be such an issue - however, in some instances the invoice date falls later than the tax point
e.g.
Tax Point 15.02.2012
Invoice Date 03.03.2012
What date do I need to use when inputing data into the system?
I am a little concerned about this as I am not sure how this would affect the VAT treatment e.g. if VAT was due for the quarter ended 29.02.2012 - Do I include this invoice or not?
What date do I need to use when inputing data into the system?
I am a little concerned about this as I am not sure how this would affect the VAT treatment e.g. if VAT was due for the quarter ended 29.02.2012 - Do I include this invoice or not?.............................
This question may hinge on whether you were using the 'Cash Accounting for VAT' scheme wherein the usual tax point would be over-ridden by the dates received and paid.
Also by using sales and purchase ledgers you could have both of, say, the date a debt was incurred by your customer and the date relevant to the VAT Return, (date you are paid).
If you are not on Cash Accounting and the system forces you to choose one of the two dates, I would choose the Tax Point to stay on the right side of Customs.
Accounts are almost always accruals based although the government may shortly change that for smaller businesses. This is what I mean by the Cash Accounting Scheme for VAT : -
