Please can someone provide some advice re the following
I work for a local charity and we have received an annual invoice dated 05/03/14 for £720 (£120 VAT) for Web & IT fees a.
This is paid via a monthly Standing order i.e.. 720/12 which goes out from April 14for the next 12 month period.
I understand that I should enter the invoice this year to claim the VAT back, however not sure how to do the entries in Sage.
Last year we had a similar situation, and our treasurer asked me to enter it as prepayments and do a journal every month to debit IT fees. However I think this is incorrect as we had a STO going out every month. Therefore the dept was chgd twice. (1). Prepayment (2) STO)
Is it possible for me to pass a journal entry this year just for the Tax portion I.e. .Dr VAT on purchases & Cr Web & IT ?
Or should I claim the VAT every month for the monthly portion (all though the invoice is dated in March2014)
Hi Nira,
Is vat done on cash accounting, if so claim vat back as per standing order. If vat is standard accounting then claim it back in the next vat quarter.
HTH,
Jules
