V3.521 Accounting

Output tax for a prescribed accounting period computed under the invoice basis comprises the aggregate of—

  1.  

    (1)     tax shown on VAT invoices issued in the period; plus

  2.  

    (2)     tax adjustments1 to such invoices; less

  3.  

    (3)     tax shown on credit notes2 issued in the period.

Where supplies are made on credit, the VAT return is normally completed from information recorded in the sales daybook, which should be so analysed that the necessary figures can be extracted without difficulty, and reconciled to the VAT account in the nominal ledger. In most cases, the procedure will be partly or wholly computerised.

Example

Trotters Independent

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial