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Post Info TOPIC: 50% VAT Reclaim
Inarush


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50% VAT Reclaim
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Hi all,

Could someone please help me.I have a long list :( but i will start by saying that one of my clients is leasing several cars and therefore can reclaim 50% of the VAT for the lease cost.

When i input that into Sage, do I need to keep the other 50% on a VAT account created through a Journal entry?(I have already made the mistake of changing the VAT rate and inputing the lease cost with full VAT so will need to fix that)

Thank you in advance.



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Elaine R


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Posts: 359
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Hi,
I can help you with this as I do this monthly at work for the cars leased by the company.

Take the VAT figure and work out 50% of that. The other 50% of the VAT gets added back on to the cost of leasing the car.

EG. Leasing invoice is for £100 plus VAT @ 20% which is £20.00. Total invoice £120.00

50% of £20.00 is £10.00.

Posting should be £110.00 against lease costs and just £10.00 against VAT.

Remember that the 50% vat reclaim in just against the finance element. If there is a service element you can claim the full VAT on that part.

Does that help you at all.

Elaine

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E Roscoe
Inarush


Member

Status: Offline
Posts: 24
Date:
Permalink Closed

Thank you :)

I appreciate your help .Only 58 problems to go :)



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