The company I work for is going to be registered for partial exemption VAT. I'm preparing the documents to send over to the accountants and was just hoping to get a bit more information about the first return calculation in order to not bombard them with useless info.
At this point in time no VAT supplies have been made so it's really just a question about input VAT.
I'm sending over all purchase invoices that are directly related to the taxable supplies. This is straight forward and there are none that are before the period of the VAT return.
The question is what to send them in relation to the overheads so they can do the residual VAT calculation. Should I send them information about puchases of overheads before the period the VAT return covers as this is the first return and VAT can be reclaimed on goods and services going back before the VAT period?
Can partial VAT on overheads be reclaimed before the period of the VAT, basically?
Ok, thanks for your help if anyone has the answers.
The company I work for is going to be registered for partial exemption VAT. I'm preparing the documents to send over to the accountants and was just hoping to get a bit more information about the first return calculation in order to not bombard them with useless info.
At this point in time no VAT supplies have been made so it's really just a question about input VAT.
I'm sending over all purchase invoices that are directly related to the taxable supplies. This is straight forward and there are none that are before the period of the VAT return.
The question is what to send them in relation to the overheads so they can do the residual VAT calculation. Should I send them information about puchases of overheads before the period the VAT return covers as this is the first return and VAT can be reclaimed on goods and services going back before the VAT period?
Can partial VAT on overheads be reclaimed before the period of the VAT, basically?
Ok, thanks for your help if anyone has the answers.
Why are the Accountants doing a VAT return? You state not VAT registered yet so therefore there is nothing to do.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If your Accountant helped set up the PtEx method (standard or special?), then they should provide the template to enable you to prepare the VAT Return. In contrast, if your Accountant has not been involved in setting up the PtEx, then why are you asking them to do the Return at all?
On your final question; where you incur input tax which relates both to taxable and exempt supplies, you need to carry out the PtEx calc, including the de minimis calcuation. Or, is any of the input tax incurred pre-registration, in which there is a different rule, which I will need to double-check!
Ok, forget my personal situation, it seems to be interfering with me getting the answer I was after.
I just want to know if on the first VAT for partial exemption can some of the overheads from a period preceding the first VAT period be reclaimed.
For example:
VAT period: Jun, Jul, Aug
Can part of the overheads from before Jun be reclaimed on the first return.
Consider it a theoretical question.
Cheers.
A thankyou to Les and Joanne would not have gone amiss there.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Quite apart from what Shaun and Les have said today, we cannot help you with additional info, if you don't at least answer Les' questions.
Plus I have to say we are all busy people with our own businesses and whilst theoretical is nice it's not so urgent. So given its now apparent lack of urgency, how about I bounce it back (much as I would do with students on here with their theoretical questions) and suggest you make your argument for how to proceed, backed up with some case law given the recent changes on the pre reg side (hint) and one of us can say whether you are on the right lines or not.
Will provide good practice For having a good dig around the vat act and what better CPD could that be?
Or are you short on time?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
